Stream line co issued 30 year bonds 5 years ago at a coupon, Ask an Expert

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Stream Line Co. issued 30 year bonds 5 years ago at a coupon rate of 7.5%.The bonds make semiannual payments. A) If these bonds currently sell for 88 % of par value, What is the YTM? B) If interest rates fall by 2% immediately what is the new price of the bond? Explain the financial principle at work here. Show all work

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