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ABC corporation has issued bonds that have a 20% coupon rate, payable semi-annually. The bonds mature in 12 years, have a face value of AED1,000

ABC corporation has issued bonds that have a 20% coupon rate, payable semi-annually. The bonds mature in 12 years, have a face value of AED1,000 and a YTM of 8%

A. Assess the price of bonds

B. Do you think this bond should be classified as a par bond or discount bond or a premium bond? justify your answer.

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