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A company has a $1,000 face value bond outstanding that pays a 3% annual coupon. The bond has two years remaining until maturity. The carrying
A company has a $1,000 face value bond outstanding that pays a 3% annual coupon. The bond has two years remaining until maturity. The carrying value of the bond is $962.81 a. (6 points) The company learns the market yield on this bond has risen to 6%. Calculate the market price of the bond given that the bond has a remaining life of two years: b. (12 points) The company decides to retire the bond at the market price in 3a. Record the JE
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