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What should be the company bonds be priced today

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Reference no: EM131970713

Jack is planning to invest in a seven-year bond that pays annual coupons at a rate of 6%. It is currently selling at $927.23. The face value is $1000. The current market yield on such bonds is closest to: Q2. A company has 4 year bonds outstanding that pay an 5.5% coupon rate. Investors buying the blnd today can expect to earn a yield to maturity of 12.1% p.a. What should be the company's bonds be priced today? Assume annual coupon payment and a face value of $1000.

Reference no: EM131970713

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