What is the current market price of the bond

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Ten years ago, the Suma Co. issued a series of 20-year bonds with a $1,000 par value. The bonds carry a coupon rate of 5%, paid semi-annually. Assume that the required rate of return on similar bonds today is 3%.

a) What is the current market price of the bond? Show all calculations.

b) What will be the bond's annual coupon yield, current yield and yield-to-maturity.

Reference no: EM133068064

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