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A friend has asked you about the current price of a bond. It is a $1,000 par, 4.5% coupon bond that is selling for $1,208.39.
A friend has asked you about the current price of a bond. It is a $1,000 par, 4.5% coupon bond that is selling for $1,208.39. He tells you the Yield to Maturity is 4.75%. He wants to know if this price looks right to you. What do you say?
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