Assuming the market interest rate

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Reference no: EM131807116

You bought a $1000 corporate bond for $900 three years ago. It is paying $30 in interest at the end of every 6 months, and it matures in 4 more years.

(a) Compute its coupon rate.

(b) Compute its current value, assuming the market interest rate for such investments is 5% per year, compounded semiannually. Contributed by D. P. Loucks,

Reference no: EM131807116

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