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ABC corporation bonds have 10 years remaining to maturity. Interest is paid annually, the par value is $1,000 and the original coupon rate is 5%.
ABC corporation bonds have 10 years remaining to maturity. Interest is paid annually, the par value is $1,000
and the original coupon rate is 5%. The current yield to maturity is 4%.
a) calculate the current market price of the bond: __________
b) calculate the current yield ; __________
c) when does the coupon rate of a bond equal the YTM? ___________
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