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Last year company A issued 6% coupon bonds with a face value of $1,000 having a maturity of 6 years. The coupons on this bond
Last year company A issued 6% coupon bonds with a face value of $1,000 having a maturity of 6 years. The coupons on this bond are paid annually. At the time these bonds were issued, they had a yield to maturity of 8.5%. Calculate the amount of original issue discount (OID) offered on these bonds. A. The original issue discount is $0. B. The original issue discount is $170.76. C. The original issue discount is $113.84. D. The original issue discount is $79.69
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