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Company's ABC has issued a bond based on a par value of USD1,000,000. The bond pays a coupon of USD50,000 per year with a maturity

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Company's ABC has issued a bond based on a par value of USD1,000,000. The bond pays a coupon of USD50,000 per year with a maturity of 10 years. The yield to maturity is currently at 6.5%. a. The bond is trading at a discount or a premium? Explain why by identifying the necessary relations and arguments. b. Calculate the price of the bond today. c. If you are offered to buy this bond today at USD1,050,000, will you accept to buy it and why

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