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Best Co. has the following bonds outstanding: Maturity Bond Price Compounding Frequency Coupon (%) Par YTM (%) (yrs) A ? 1 Semi-annual 1 1,000 0.75
Best Co. has the following bonds outstanding: Maturity Bond Price Compounding Frequency Coupon (%) Par YTM (%) (yrs) A ? 1 Semi-annual 1 1,000 0.75 B 955 5 Semi-annual 2 1,000 ? C ? 10 Semi-annual 3 1,000 5.00 D 127 30 Semi-annual 0 1,000 ? If Best Co. wants to issue a new 10-year semi-annual bond, and the market demands a 4.25% yield to maturity, what coupon must this bond offer investors to be price at par? O Coupon s 4.00% 0 4.00%
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