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What are the coupon rates for the following bonds: (hint: find the coupon payment first, then divide it by the par value to find the
What are the coupon rates for the following bonds:
(hint: find the coupon payment first, then divide it by the par value to find the coupon rate)
i) Bond C: Par value = $1000; years to maturity = 10; yield to maturity = 8%; current price = $1,100.65; annual payment
ii) Bond D: Par value = $1,000; years to maturity = 30; yield to maturity = 10%; current price = $1,189.29; semi-annual payment
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