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Christina is considering investing in a bond having a $1,000 par value, an 8% coupon rate, and 20 years until

maturity. The bond pays interest annually. Christina requires a 6% return on the bond.

a. What is the value of the bond to Christina?  Round your answer to two decimals.

b. If the current market price of the bond is $1,150, what is the yield to maturity on the bond?  Express your answer in percent with two decimals.

please show using the Financial calculator

Top Answer

A. Bond price is $1229.40... View the full answer

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