A 1000 face value bond of acme inc pays an annual coupon

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A $1,000 face value bond of Acme Inc. pays an annual coupon and carries a coupon rate of 5.5%.What interest payments do bondholders receive each year? It is was a 30 year bond when issued and it has 13 years remaining to maturity. If it currently has a yield to maturity of 6.25%.

(a) What interest payments do bondholders receive each year?

(b) What is the current bond price?

(c) What is the bond price if the yield to maturity rises to 7%?

Reference no: EM13575659

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