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Islay Corp. is issuing bonds paying $48 per year but paid semianaully that will mature 15 years from today. The bond is currently selling for
Islay Corp. is issuing bonds paying $48 per year but paid semianaully that will mature 15 years from today. The bond is currently selling for $960 for a face of $1,000.
Calculate:
a) Coupon rate
b) Current yield
c) The yield to maturity
d) The market price of the bond if the market rates for bonds of equal risk changed to 4%.
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