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You have funds that you want to invest in bonds, and you just noticed in the financial pages of the local newspaper that you can
You have funds that you want to invest in bonds, and you just noticed in the financial pages of the local newspaper that you can buy a $1,000 par value bond for $800. The coupon rate is 10% (with semiannual payments), and there are 10 years before the bond will mature and pay off its $1,000 par value
Correct Pricing Is the bond priced correctly if it has a YTM of 12%?
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