What cash flows does it promise if payments are annual

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Reference no: EM131449216

A 30-year, 5% coupon $10,000 bond is for sale.

(a) What cash flows does it promise if payments are annual? If the bond is priced to yield 4%, how much does it cost?

(b) If it is selling for $9,243.21, what is its yield to maturity?

(d) If the bond in part (b) is stripped and the right to receive the coupon payments is sold to one investor and the right to receive the face value payment is sold to another, what dies each pay?

Reference no: EM131449216

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