How about if the bond is priced to yield

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Suppose that you purchase a $5000 coupon bond with an annual coupon of 8% and a maturity of 5 years. A) If the bond is sold at Par Value (that is to yield the coupon rate) what does it cost? B) How about if the bond is priced to yield 9%, will it cost more or less than par value? How much will it cost?

Reference no: EM131178075

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