A General Power bond with a face value of $1,000 carries a coupon rate of 8.1%, has
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Question:
A General Power bond with a face value of $1,000 carries a coupon rate of 8.1%, has 9 years until maturity, and sells at a yield to maturity of 7.1%. (Assume annual interest payments).
a. What interest payments do bondholders receive each year?
b. At what price does the bond sell?
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