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Bond prices and yields Assume that the Financial Management Corporations $1,000-par-value bond had a 5.700% coupon, matures on May 15, 2023, has a current price
Bond prices and yields Assume that the Financial Management Corporations $1,000-par-value bond had a 5.700% coupon, matures on May 15, 2023, has a current price quote of 97.708, and has a yield to maturity (YTM) of 6.034%. Given this information, answer the following questions: a. What was the dollar price of the bond? b. What is the bonds current yield? c. Is the bond selling at par, at a discount, or at a premium? Why? d. Compare the bonds current yield calculated in part b to its YTM and explain why they differ.
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