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On May 25, 2009, Digital Systems issued a $1,000 par value bond with an 8% coupon rate and a May 25, 2021, maturity date. Interest

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On May 25, 2009, Digital Systems issued a $1,000 par value bond with an 8% coupon rate and a May 25, 2021, maturity date. Interest will be paid semiannually. How much total interest will the owner of the bond receive (from May 25, 2009 to May 25, 2021)? A. $950 B. $960 C. $970 D. $980 E. $990 Suppose that you buy a $10,000 par value bond for a market price of $11,490. The current yield of this purchase is 5.4%. If interest payments are to be made monthly, what is the bond's coupon rate? A. 2.6% B. 4.8% C. 5.4% D. 6.2% E. 7.1% Recall that I = Pmar Rmar T and / Ppar Rpart

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