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Your broker faxed to you the following information about two semiannual coupon bonds that you are considering as a potential investment. Unfortunately, your fax machine
Your broker faxed to you the following information about two semiannual coupon bonds that you are considering as a potential investment. Unfortunately, your fax machine is blurring some of the items, and all you can read from the fax on the two different bonds is the following:
Features | IBM Coupon Bond | AOL Coupon Bond |
| ||
Face value (Par) | $1,000 | $5,000 | |||
Coupon rate | 11.5% | ? | |||
Yield to maturity | 8.5% | 10.5% | |||
Years to maturity | 15 | 10 | |||
Price | ? | $4,847.47 |
Fill in the missing data from the information that the broker sent.
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