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Question 5. Linville Corporation issued 20-year bond, par of $1,000 bonds eight years ago at a coupon rate of 5 percent. The bonds make semi-annual

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Question 5. Linville Corporation issued 20-year bond, par of $1,000 bonds eight years ago at a coupon rate of 5 percent. The bonds make semi-annual payments. If these bonds currently sell for 93 percent of par value, what is its yield to maturity (YTM)? Question 6. Pecos Company just issued a 15-year, 10 percent coupon rate, $1,000 par bond that pays interest semi-annually. Three years later, if the going rate of interest on the bond falls to 8 percent, what is the value of the bond? Question 7. Karen just bought a 10-year, 7 percent bond with a $1,000 par for $760. If shell sells this bond four years later for $850, what is her realized yield in year 4 (with semi-annual interest)

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