What should be the market price today of these bonds

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Reference no: EM131055192

Bank purchased bonds two years ago. These bonds have a par value of $300 million and a coupon rate of 4.75 percent. As of today, they have seven years until they mature. Investors today are requiring a 5 percent yield to maturity.

a. What should be the market price today of these bonds?

b. If you realized yield on these bonds was 4.65 percent, how much did you pay these bonds two years ago?

Reference no: EM131055192

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