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You observe that The James Company Inc. issued a $10 trillion 7 year bond 5 and a half years ago. The bond pays its 7

You observe that The James Company Inc. issued a $10 trillion 7 year bond 5 and a half years ago. The bond pays its 7 percent coupon semi-annually. a. If the current market interest rates are 5.5 percent, what will a bond from the James Company sell for in the market today? (4 marks) b. What is the current yield on this bond? (2 marks)

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