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A newly issued 1 0 - year maturity, 6 % coupon bond making annualcoupon payments is sold to the public at a price of $
A newly issued year maturity, coupon bond making annualcoupon payments is sold to the public at a price of $ The bond will not be sold at the end of the year. The bond is treated as an originalissue discount bond.
Required:
a Calculate the constant yield price. Do not round intermediate calculations. Round your answer to decimal places.
Constant yield price
b What will be an investor's taxable income from the bond over the coming year? Do not round intermediate calculations. Round your answer to decimal places.
Taxable income
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