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Only second. Not 1 Problem 2 (27 points) Suppose you hold a 6.80 percent coupon bond with a par value of $1,000, that matures in
Only second. Not 1
Problem 2 (27 points) Suppose you hold a 6.80 percent coupon bond with a par value of $1,000, that matures in 30 years and pays semi-annual coupons. 1) If currently, the bond is priced to offer a yield to maturity of 7.00 percent, what is its current selling price? (8 points) Problem 3 (15 points) O'Brien Lid's outstanding bonds have a $1.000 par value and they mature in 25 years. The nominal yield to maturity is 10%, they pay interest semiannually and they sell at a price of $975. What is the bond's nominal coupon interest rateStep by Step Solution
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