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    Finance - Bond Pricing

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    1. Bond Pricing. A 30-year maturity bond with face value $1,000 makes annual coupon payments and has a coupon rate of 8 percent. What is the bond's yield to maturity if the bond is selling for

    a. $900
    b. $1,000
    c. $1,100

    2. Bond Pricing. Repeat the previous problem if the bond makes semiannual coupon payments.

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    Solution Preview

    Finance - Bond Pricing

    1. Bond Pricing. A 30-year maturity bond with face value $1,000 makes annual coupon payments and has a ...

    Solution Summary

    The solution demonstrates how to calculate the answers and does so in the problem.

    $2.19

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