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Consider a bond that has a price of $804.01, a current yield of 6.84%, a yield to maturity of 10%, a face value of $1000, and 6 years to maturity. What are the annual coupon payments? Enter your response below. Enter your answer rounded to 2 DECIMAL PLACES.

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Answer #1

Current yield = Annual coupon payments÷Bond price

6.84% = Annual coupon payments÷$804.01

Annual coupon payments = $54.99   

Hence, annual coupon payment is $54.99

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