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Semi-annual coupon interest payments

Problem: A three-year bond has 8.0% coupon rate and a face value of $1000.

(1). If the yield to maturity on the bond is 10%, calculate the price of the bond assuming that the bond makes semi-annual coupon interest payments.

(2). Assuming that this bond trades for $1,112, what is the YTM for this bond assuming that the bond makes semi-annual coupon interest payments? (Compute IRR).

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Finance Basics: Semi-annual coupon interest payments

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