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What is the initial price of the bond

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Reference no: EM132999147

A portfolio manager purchases $1,000,000 face amount of a 20-year corporate bond with a 4.25% coupon priced at a 4.8% required yield.

(a) What is the initial price of the bond? (assume no accrued interest)

(b) How much is the the initial investment? (cost basis)

Reference no: EM132999147

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