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On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as ABC 5.6s34 in the WSJ and has
On May 1, 2021, you are considering to buy a newly-issued ABC Company bond, which is quoted as "ABC 5.6s34" in the WSJ and has a par value of $1,000. The company pays coupon interests every 6 months. If you require a 6.9% return on this bond, how much would you pay for this bond? (Hint: Identify annual coupon rate, years to maturity, and yield to maturity to compute the bond price.)
Group of answer choices
a. $883.78
b. $889.60
c. $885.22
d. $886.60
e. $887.12
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