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Posted on Oct 04, 2024

You are considering buying a bond from the Schmancy Corporation with a $1000 face value, 6.3% annual coupon that has 4 years left until maturity.

You are considering buying a bond from the Schmancy Corporation with a $1000 face value, 6.3% annual coupon that has 4 years left until maturity. The Schmancy Corp bond has a yield to maturity of 8%. What is the fair price of this bond?

Selected Answer:

$526.37

Correct Answer:

$943.69

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