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PepsiCo Inc. has several issues of corporate bonds outstanding. One issue of their long-term bonds has a $1000 face value and these bonds have 22

PepsiCo Inc. has several issues of corporate bonds outstanding. One issue of their long-term bonds has a $1000 face value and these bonds have 22 years to maturity. These bonds pay a semi-annual coupon with the annual coupon rate of 4.875%/per year. Yield to maturity on these bonds is 4.306%. a) Will these bonds trade at premium or discount? b) What should be the current price of the bond?

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