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CVS Health Corp. issued 4.30% coupon bonds in March 2018. Coupon is paid semi-annually. The bonds have a $1000 par value and will mature on

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CVS Health Corp. issued 4.30% coupon bonds in March 2018. Coupon is paid semi-annually. The bonds have a $1000 par value and will mature on 3/25/2028 (MM/DD/YYY). a. Provide a timeline of cash flows that would be used to calculate the value of the bond today, i.e. the day you are completing this exam. [ 3 points] b. Assume that this bond last traded at $980. Calculate the current yield based on the last traded price. [1 point] c. If you could calculate the yield to maturity (YTM) based on the last traded price, would you expect it to be greater, equal to, or less than the coupon rate of 4.30% ? Explain your answer. [1 point]

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