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Smith Financial is offers another product called a mystery coupon bond. This bond has a face value of $1,000 and a maturity of five years.
Smith Financial is offers another product called a mystery coupon bond. This bond has a face value of $1,000 and a maturity of five years. The bond pays an annual coupon, but the amount of the coupon is unknown. However, you know that the price of the bond is $1,052.30, and bonds of similar risk and maturity currently have a yield to maturity of 6.25%. What is the annual coupon payment (to the nearest dollar) on this bond?
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