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A coupon bond that pays interest annually has a par value of $1,000, matures in five years, and has a yield to maturity of 6%.
A coupon bond that pays interest annually has a par value of $1,000, matures in five years, and has a yield to maturity of 6%. The intrinsic value of the bond today will be if the coupon rate is 5%. a) $1,042.12 b) $886.28 c) $957.88 d) $1,123.01 O e) $1,000.00
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