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Assume you are interested in adding a bond to your investment portfolio. You have identified a corporate bond that has a par value of $1,000
Assume you are interested in adding a bond to your investment portfolio. You have identified a corporate bond that has a par value of $1,000 and 15 years to maturity. The bond has a coupon rate of 12% per annum with semiannual interest payments. The yield to maturity on that bond of 11%. What is the current price of that bond and how is the bond priced (premium, discount, or par)?
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