Short selling to reduce unwarranted volatility in the market

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1. Bond valuation Callaghan Motors' bonds have 11 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 7.5%, and the yield to maturity is 12%. What is the bond's current market price? Round your answer to the nearest cent.

2. Should we ban short selling to reduce "unwarranted" volatility in the markets and to keep the pessimists at bay as some commentators argue?

Reference no: EM131853784

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