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A semi-annual corporate bond has a coupon rate of 9 percent per year. The face value. is $1,000. The market interest rate (yield to maturity)
A semi-annual corporate bond has a coupon rate of 9 percent per year. The face value. is $1,000. The market interest rate (yield to maturity) for this bond today is 10.5 percent. This bond has 25 years. before maturity. What is the price of this bond today? (5 points). b. What is the current yield for this bond? (3 points) c. Why is the current yield different from the current market rate of this bond? (2 points)
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