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A bond has a par value of $1,000, a current yield of 6.87 percent, and semiannual...

A bond has a par value of $1,000, a current yield of 6.87 percent, and semiannual coupon payments. The bond is quoted at 100.78. What is the amount of each coupon payment?

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Answer #1

Coupon paid = current yield x price $69.24 [6.87% x 1007.8] $34.62 [ 69.24/2] Each coupon payment =

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