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What would you pay for a bond that pays an annual coupon of $45, has a face value of $1,000, matures in 11 years, and has a yield to maturity of 10%? $800.18 $775.34 $910.14 $642.77

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter4: Bond Valuation

Section: Chapter Questions

Problem 13P: Yield to Maturity and Current Yield You just purchased a bond that matures in 5 years. The bond has...

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What would you pay for a bond that pays an annual coupon of $45, has a face value
of $1,000, matures in 11 years, and has a yield to maturity of 10%?
$800.18
$775.34
$910.14
$642.77

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