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Company B had issued 10-year bonds two years ago at the coupon rate 5.5%. The...

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Finance

Company B had issued 10-year bonds two years ago at the coupon rate 5.5%. The bond makes annual payments. The yield to maturity (YTM) of these bonds is 4%. The face value of the bond is 1000.

a) What is the coupon payment each year?

b) Calculate the current bond price. Is this premium or a discount bond? Explain

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