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help in need with workings 5. $100 par value bond makes annual...

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Accounting

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5. $100 par value bond makes annual interest payment of $7.5. If it offers a yield to maturity of 7.5%, what is the price of the bond? A. Step 1: Find the bonds coupon rate {please see under bond vocabulary of lecture ppt for formula: The coupon rate derived by dividing the bond's annual coupon payment by its par value} the bond's coupon rate is (7.50/100 = 7.5%)

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