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Consider the bonds of XYZ Corporation which are frequently traded in the bond market. These bonds are currently rated Aaa by Moody's and AAA by

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Consider the bonds of XYZ Corporation which are frequently traded in the bond market. These bonds are currently rated Aaa by Moody's and AAA by Standard & Poor's. These $1,000 par value bonds were originally issued exactly five years ago today. The original market price of these bonds when they were issued five years ago equaled $999 for each $1,000 par value bond. In regard to this outstanding bond issue, today there remain ten full years until maturity, and these bonds are not callable by XYZ at any time prior to their maturity date. These bonds pay interest at a fixed, coupon rate of interest equal to four percent. Interest payments on these bonds are to be made semi-annually for the next ten years. The next semi-annual coupon interest payment is to be made exactly six months from today. At bond maturity ten years from now XYZ Corporation promises to make the last semi-annual coupon interest payment and on that same day to make a par value payment. In the bond market today these XYZ Corporation bonds are priced so that the calculated annual yield to maturity is equal to two percent. From today until these bonds mature, how many semi-annual coupon interest payments are scheduled to be made? 10 payment 15 payments O 20 payments 25 payments 30 payments

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