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Sarah owns a bond with a four percent coupon and a six percent yield to maturity. This bond has six years to maturity and pays
Sarah owns a bond with a four percent coupon and a six percent yield to maturity. This bond has six years to maturity and pays interest semi-annually. Which one of the following is correct? A The bond is selling at a discount. B The amount of each interest payment is $40. C The current price of the bond will be greater than the par value. D The present value is assumed to be $1,000. E You can do it
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