What is the current market price of this bond

Reference no: EM132968921

Question: Suppose a particular corporate bond has a face (par) value of $100,000, a coupon rate of 8% per annum, semi-annual interest payments, and 10 years to maturity. An interest payment has just been made and the current annual yield to maturity is 9%.

(a) What is the current market price of this bond?

(b) What is the current effective annual yield to maturity of the bond?

Reference no: EM132968921

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