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The MJ Corp has a 6 percent coupon bond outstanding that matures in 10.5 years. The...

The MJ Corp has a 6 percent coupon bond outstanding that matures in 10.5 years. The bond pays interest semiannually. What is the market price if the face value is $1,000 and the yield to maturity is 12.62%?

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Answer #1

Anwen . Annual Interest = 67x $1000 a $30 (semi-annual) 2 na 10.5x2 = 1 YTM = 12.62% = 6.31% 2 Market Price = Interest & PVAF

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