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A $1,000 face value bond of Acme Inc. pays an annual coupon and carries a coupon rate of 4.75%. It is a 30 year bond when issued and it has 11 years remaining to maturity. If it currently has a yield to maturity of 5.5%.

 (a) What interest payments to bondholders receive each year?

 (b) What is the current bond price?

 

 (c) What is the bond price if the yield to maturity rises to?

Financial Management, Finance

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