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Consider the following coupon bond issued by Ford Motor: Coupon Rate 7.500%, Maturity Date: 08/01/2026 The bond has 3 years to maturity and pays coupons
Consider the following coupon bond issued by Ford Motor: Coupon Rate 7.500%, Maturity Date: 08/01/2026 The bond has 3 years to maturity and pays coupons semiannually. The yield on comparable bonds is 4%. Assume that the Face Value of the bond is 1,000 . Which of the following is true: The maximum price that should be paid for this bond is $1,098 The maximum price that should be paid for this bond is $980 The maximum price that should be paid for this bond is $1,050 The maximum price that should be paid for this bond is $1,128. none of these are correct
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