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How much will each coupon payment be

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Your friend didn't budget his money very well and now has no money to get through the rest of the term. He approaches you and asks if you are wilting to buy a bond he owns. He is selling it for $901.32. The bond is a TD 5.5 of 2034 (matures Inn years) It has face value of $1.000 and similar risk bonds Issued today are ylelding 6.5% Assume Interest Is compounded semi-annually and coupon payments ate received semi-annually.

Problem a. What r value should be used in the calculations?

Problem b. How much will TD give you for the bond at the end of 2034?

Problem c. How much will each coupon payment be?

Problem d. What is the value of this bond?

Problem e. Why is your friend selling the bond at a price that is not equal to its face value?

Reference no: EM132809580

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