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Suppose XYZ bank plans to issue a $1000 coupon bond with ten years to maturity. The bond will pay annual coupons of $56 per year.
Suppose XYZ bank plans to issue a $1000 coupon bond with ten years to maturity. The bond will pay annual coupons of $56 per year. Similar bonds currently have a yield to maturity of %7.6 per year. What should be the market value of this annual coupon bond?
a) $480.70
b) $1000
c) $579.91
d) $863.34
e) $1150.03
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