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A company s debt has a face value of $ 1 0 0 million. The bond has a coupon rate of 5 % . The
A companys debt has a face value of $ million. The bond has a coupon rate of The bond will pay an annual coupon payment, of its face value, which is $ million. The maturity time of the bond is years. This means that the bond will have a year term before it reaches its maturity rate.
What should the percentage to yield on the bond be
What should the market rate be And why?
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