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Q1. (a) Briefly explain some of the characteristics of corporate bonds. (6 marks) (b) Compute the price of a Texas Corporation bond recently listed in

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Q1. (a) Briefly explain some of the characteristics of corporate bonds. (6 marks) (b) Compute the price of a Texas Corporation bond recently listed in the Wall Street Journal. The bonds have an 8% coupon rate, a $1,000 par value (maturity value), and mature in two years. Assume semiannual compounding and that market rate of interest is 10%

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