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Suppose that Ford issues a coupon bonds at a price of $1,000, which is the same as thebond's par value. Assume the bond has a
Suppose that Ford issues a coupon bonds at a price of $1,000, which is the same as thebond's par value. Assume the bond has a coupon rate of 8.5%, pays the coupon once peryear, and has a maturity of 25 years.
If an investor purchased this bond at the price of $1,000, for each year except the lastyear, the investor would receive a payment of $85
When the bondmatures, the investor would receive a final payment of $
nothing
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