Find actively traded annual-pay bonds

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Use matrix pricing to estimating the value of a non-traded bond of Tools Company as a percentage of par. The bond has an annual-pay 6% coupon, matures in six years, and has a CCC credit rating. Actively traded annual-pay bonds with similar credit ratings include the following: an 8% bond with 5 years to maturity yielding 9.45%; a 5% bond with 5 years to maturity yielding 9.55%; and a 7% bond with 10 years to maturity yielding 10.00%.

Reference no: EM132932849

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