Price of the annual coupon bond
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A company has outstanding bonds with a 6 year maturity, $1,000 par value and 7% coupon paid semiannually and those bonds sell at their par price. This same company has another bond with the same risk, maturity and par value but this second bond pays a 7% annual coupon. What is an estimate of the price of the annual coupon bond?
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Price of the annual coupon bond
A company has outstanding bonds with a 6 year maturity, $1,000 par value and 7% coupon paid ...
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