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Suppose a Canadian company issues a bond with a par value of CAD 1 , 0 0 0 , 3 years to maturity, and a

Suppose a Canadian company issues a bond with a par value of CAD

1, 000, 3

years to maturity, and a coupon rate of

8

percent paid annually. If the yield to maturity is

8

percent, what are the coupon payment and current price of the bond? If the YTM rises to

12 %

on these bonds, what would happen to the coupon payment and bond price?

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