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Consider a $5,000 par value 20-year 10% coupon BB-rated bond that pays out coupon payments quarterly. The bond is now being priced to generate an
Consider a $5,000 par value 20-year 10% coupon BB-rated bond that pays out coupon payments quarterly. The bond is now being priced to generate an annual YTM of 9%. Compute the intrinsic value(or price), current yield and capital gains yield of this discount/par/premium (circle one) bond. $5,461.87; 9.15%, -0.15%>
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