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William called his broker to inquire about purchasing Sally Ruth Corporate bonds. The $1,000 par value bonds pay an annual coupon interest of 10 per-
William called his broker to inquire about purchasing Sally Ruth Corporate bonds. The $1,000 par value bonds pay an annual coupon interest of 10 per- cent on a quarterly basis, mature in 10 years, and are currently priced at $884 each. Similar bonds are currently vielding 13 percent. Is the bond over-priced. under-priced, or correctly priced? Show calculations to support your
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