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    Face value of 7.5% coupon bonds outstanding.

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    The firm also has $40,000,000 in face value of 7.5% coupon bonds outstanding. These bonds were also issued three years ago and currently have 12 years left to maturity. They pay the interest on coupons semiannually. The bonds currently trade at 104% of par.

    1.What would you probably pay if you bought on e of these bonds today?

    2. Compute the Yield to maturity for one of these bonds?
    a. What is "pmt"?
    b. What is "N"?
    c. What is "FV"?
    d. What is "PV"?
    e. What is I?
    f. What is Yield?
    3. How many bonds are there?

    4. What is the market value of these bonds?

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    Solution Summary

    The expert examines the face value of 7.5% coupon bonds outstanding.

    $2.19

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