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Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company
Even though most corporate bonds in the United States make coupon payments semiannually, bonds issued elsewhere often have annual coupon payments. Suppose a German company issues a bond with a par value of 1,000, 11 years to maturity, and a coupon rate of 6 percent paid annuallly. If the yield to maturity is 10 percent, what is the current price of the bond?
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