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Consider the following coupon bond issued by Ford Motor: Coupon Rate 9.950% The bond has 10 years to maturity and pays coupons semiannually. The yield
Consider the following coupon bond issued by Ford Motor: Coupon Rate 9.950% The bond has 10 years to maturity and pays coupons semiannually. The yield on comparable bonds is 5%. Assume the face value is 1,000 . Suppose someone offers you this bond at $1,100. Is this a good buy? Yes, the bond is worth more at $1,386 No, the bond is worth more at $1,400 none of these are correct No, the bond is worth less at 990. Yes, the bond is worth more at $1,415
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