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Question 5 1 pt Paavo Nurmi has been offered a 15-year bond issued by Barone, Inc., at a price of $940. The bond has a

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Question 5 1 pt Paavo Nurmi has been offered a 15-year bond issued by Barone, Inc., at a price of $940. The bond has a coupon rate of 10 percent and pays the coupon semiannually. Bond has a face value of $1,000. Similar bonds in the market will yield 10.82 percent today. What are the cash flows from this bond? $94 coupon payment annually and 940 at maturity $47 coupon payment semi-annually and 940 at maturity $100 coupon payment annually and $1000 at maturity $50 coupon payment semi-annually and $1000 at maturity Question 6 1 pts Katie Ledecky has been offered a 20-year bond issued by Barone, Inc., at a price of $990. The bond has a coupon rate of 9 percent and pays the coupon semiannually. Similar bonds in the market will yield 8 percent today. Should Katie Ledecky buy the bonds at the offered price? Yes, she should buy the bonds as the bonds are undervalued. No, she should not buy the bonds as the bonds are overvalued. She should be indifferent about buying or not as the bonds are correctly valued. She should just focus on swimming and leave such financial decisions to the experts

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