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A) As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 22 years, the coupon rate is 12%
A)
As with most bonds, consider a bond with a face value of $1,000. The bond's maturity is 22 years, the coupon rate is 12% paid annually, and the discount rate is 12%.
What is this bond's coupon payment?
B)
A bond offers a coupon rate of 14%, paid semiannually, and has a maturity of 6 years. Face value is $1,000. If the current market yield is 5%, what should be the price of this bond?
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