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You have the following Wall Street Journal (WSJ) information: A particular IBM bond issue has a coupon rate of 8% and a current yield (annual
You have the following Wall Street Journal (WSJ) information: A particular IBM bond issue has a coupon rate of 8% and a current yield (annual interest payment / current price) of 9%. Treasury bonds are yielding 5%. You spilled your lunch on the WSJ, and you cannot read the closing price. One IBM bond (with a $1,000 face value) will cost O Less than $1,000 Exactly $1,000 O More than $1,000 O Not enough information. You should eat more carefully next time. O Exactly $1,090
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