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A company issues a ten-year bond at par with a coupon rate of 6.8% paid semi-annually. The YTM at the beginning of the third year
A company issues a ten-year bond at par with a coupon rate of
6.8%
paid semi-annually. The YTM at the beginning of the third year of the bond (8 years left to maturity) is
8.8%.
What is the new price of the bond?
A.
$887
B.
$1,064
C.
$1,242
D.
$1,000
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