Discuss the market forces
Bonds usually sell at a price that is different from the bond's face value. When this happens, the bonds are sold at a discount or premium. Discuss the market forces that would cause a bond to sell at a price that is different from its face value.
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Bonds usually sell at a price that is different from the bond's face value. When this happens, the bonds are sold at a discount or premium.
What is the yield to maturity of a five-year, $5000 face value bond with a 4.5% coupon rate and semiannual coupons if this bond is currently trading for a price of $4876?
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