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Points: 1 17 Sally is computing the present value of a semi- annual coupon bond that has a 5 percent yield to maturity, a 4
Points: 1 17 Sally is computing the present value of a semi- annual coupon bond that has a 5 percent yield to maturity, a 4 percent coupon, and six years to maturity. Which one of the following is correct? A The present value is assumed to be $1,000. B The amount of each interest payment is $40. The current price of the bond will be greater than the par value. D The bond is selling at a discount. E You can do it
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