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18. Today (T=0), an investor purchased a five year bond with an 8.0% coupon at par. Assume interest rates do not change from20. Today (T=0), an investor purchased a nine year bond with an 8.0% coupon for $9,680. The bond has a face value of $10,000.21. Currently you have $120.00 in cash and 1000 shares of Stock Y in your brokerage account. You plan to sell your 1000 share

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Answer #1

18. The correct answer is option D. 8%

If the bond is issued at par, then the coupon rate is equal to the yield to maturity assuming that the coupons are reinvested at the yield to maturity.

Please do not downvote for not answering the remaining questions. As per HOMEWORKLIB RULES, when there are multiple questions, we are encouraged to provide a solution to at least the first question.

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