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Suppose you buy ADA Co. bonds today with a par value of $1000 and a current market value of $768.00, having 10% yield to maturity.
Suppose you buy ADA Co. bonds today with a par value of $1000 and a current market value of $768.00, having 10% yield to maturity. The bonds mature in 5 years and interest is paid annually. One year from now, when the yield to maturity is 12%, you sell the bond. Answer the following question based on the above information. The annual coupon payment is:
$50 | ||
$110 | ||
$77 | ||
None of the above |
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