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Mu strame c mo resolver Bond prices and yields Assume that the Financial Management Corporation's $ 1 comma 0 0 0 - par - value
Mustrame cmo resolver
Bond prices and yieldsAssume that the Financial Management Corporation's $ comma parvalue bond has a coupon matures on May has a current price quote of and a yield to maturityYTM of Given this information, answer the following questions:
aWhat is the dollar price of the bond?
bWhat is the bonds current yield
cIs the bond selling at par, at a discount, or at a premium? Why?
dCompare the bond's current yield calculated in part b to its YTM and explain why they differ.
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Part
aThe dollar price of the bond is $
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