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A. James Inc. issues a bond (James bond, in short) with a par value of $1,000, a coupon rate of 8% per annum, and a
A. James Inc. issues a bond (James bond, in short) with a par value of $1,000, a coupon rate of 8% per annum, and a YTM of 11%. If the bond is selling for $815.66, what is the maturity of the bond?
B. How much would James bond be selling for if it was a semiannual bond with a maturity of 6 years? [Hint: when the bond becomes a semiannual bond the number of payments double
Please explain how you solved it step by step so I can understand how to do it, I can only use my financial calculator for my exam.
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