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Bond prices and yields Assume that the Financial Management Corporation's $1,000 par value bond has a 7200% coupon, matures on May 15, 2027 has a

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Bond prices and yields Assume that the Financial Management Corporation's $1,000 par value bond has a 7200% coupon, matures on May 15, 2027 has a current price quote of 94.874 and a yield to maturity (YTM) of 7.672%. Given this information, answer the following questions a. What was the dollar price of the bond? b. What is the bond's current yield? c. Is the bond selling at parat a discount, or at a premium? Why? d. Compare the bond's current yield calculated in part b to its YTM and explain why they differ. a. The dollar price of the bond is $ (Round to the nearest cont.) b. The bond's current yield is %. (Round to two decimal places.) c. The bond is selling at because is price is the par value. (Select from the drop-down menus.) d. Compare the band's current yield calculated in part b to its YTM and explain why they differ, The yield to maturity is than the current yield because the former includes $51.26 in price between today and the May 15, 2027 bond maturity (Select from the drop-down menus)

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