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Missing information on a bond. Your broker faxed to you the following information about two annual couponLOADING... bonds that you are considering as a potential
Missing information on a bond. Your broker faxed to you the following information about two annual couponLOADING... bonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items, and all you can read from the fax on the two different bands is the following: Fill in the missing data from the information that the broker sent. What is the price of the IBM coupon bond?
Features | IBM Coupon Bond | AOL Coupon Bond | ||
Face value (Par) | $1,000 | $5,000 | ||
Coupon rate | 10.5% | ? | ||
Yield to maturity | 7.5% | 6.5% | ||
Years to maturity | 10 | 25 | ||
Price | ? | $5,914.84 |
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