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) An ordinary bond of AGL Corporation has an annual coupon rate of 8% and a face value of $1,000. The bond has 9 years
) An ordinary bond of AGL Corporation has an annual coupon rate of 8% and a face value of $1,000. The bond has 9 years to maturity. Coupons are paid semi-annually and the current yield to maturity is 9%. Your broker calls and offers to sell you one of these bonds for $940. Should you accept this offer? Explain why or why not. What is the effective annual yield on this bond
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Financial Markets and Institutions
Authors: Anthony Saunders, Marcia Cornett
6th edition
9780077641849, 77861663, 77641841, 978-0077861667
