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BDJ Co. currently has 4.5% coupon semi-annual bonds on the market that sell for $930.50, make semiannual payments, have a $1,000 par value, and mature

BDJ Co. currently has 4.5% coupon semi-annual bonds on the market that sell for $930.50, make semiannual payments, have a $1,000 par value, and mature in 20 years.

a. What is the YTM on the bonds?

b. If This company run into cash flow problems what do you expect will happen to the price and yield to maturity of the bonds when the market prices in this new risk?

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