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a)XYZ company has just issued a 30-year bond with a coupon rate of 7.50% (annual coupon payments) and a face value of $1,000. If the
a)XYZ company has just issued a 30-year bond with a coupon rate of 7.50% (annual coupon payments) and a face value of $1,000. If the yield to maturity is 11%, what is the price of the bond? Round to the nearest cent.
b) Suppose a zero-coupon bond with 11 years to maturity and $1,000 face value has a yield to maturity of 6%, what the is price of the bond? $________ (Round to the nearest cent.)
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