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A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public at a price of $750. The bond will
A newly issued 10-year maturity, 4% coupon bond making annual coupon payments is sold to the public at a price of $750. The bond will not be sold at the end of the year. The bond is treated as an original-issue discount bond. a. Calculate the constant yield price. (Do not round intermediate calculations. Round your answer to 2 decimal places.) X Answer is complete but not entirely correct. Constant yield price $ 780.56 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 2 decimal places.) X Answer is complete but not entirely correct. Taxable income 70.56
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