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Suppose the Eight-Inch Nails (EIN) Company issues a $1,000 face value, five-year zero- coupon bond. Assume the yield is 14% to maturity. What is the
Suppose the Eight-Inch Nails (EIN) Company issues a $1,000 face value, five-year zero- coupon bond. Assume the yield is 14% to maturity. What is the price of this zero-coupon bond? 2. A bond has a quoted price of $1,080.42. It has a face value of $1,000, a semiannual coupon of $30, and a maturity of five years. What is its current yield? What is its yield to maturity? Which is bigger? Why? N = I/Y = PV = PMT = FV =
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