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A 7 percent coupon bond has a yield to maturity of 6.5 percent. The bond matures in seven years, has a face value of $1,000,

A 7 percent coupon bond has a yield to maturity of 6.5 percent. The bond matures in seven years, has a face value of $1,000, and pays semiannual interest payments. What is the amount of each coupon payment?

a.

$70.00

b.

$35.00

c.

$65.00

d.

$60.00

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