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The AirJet Service Company's bonds have four years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon
The AirJet Service Company's bonds have four years remaining to maturity. Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 8.75%.
(a)What is the yield to maturity at a current market price of $1,108?
(b)Would you pay $935 for one of these bonds if you thought that the market rate of interest was 9.5%?
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