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A company issued a bond 2 years ago that was initially a 5- year bond with annual coupon of $30 and a face value of
A company issued a bond 2 years ago that was initially a 5- year bond with annual coupon of $30 and a face value of 1000. At that time the yurls was 3% and the bond was prices at 1,000. Now therr is only 3 years remaining to maturity and the yield has changed to 5%. The current coupon was just paid yesterday. what is the value of the bond? a. 945 b. 965 c. 985 d. 1,005
a. 945
b. 965
c. 985
d. 1,005
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