What was the value of the bond on january

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Point 1: Atlantic Company issued a series of bonds on 1 January 2010. The bonds were sold at par ($1,000), have a 7% coupon rate, and will mature on 31 December 2024. Interest payments are made semiannually on 30 June and 31 December.

Question a. What was the value of the bond on 1 January 2016, assuming that market interest rates had fallen to 5%? Round your answer to two decimals.

Question b. On 1 January 2020, the bonds sold for $1,040. What was the yield to maturity on that date? Express your answer in percent with two decimals.

Reference no: EM132484617

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