The par value is 1000 the coupon rate equals 4 percent and


1. A five-year bond pays interest annually. The par value is $1,000 and the coupon rate equals 7 percent. If the market's required return on the bond is 8 percent, what is the bond's market price?

2. A bond that matures in two years makes semiannual interest payments. The par value is $1,000, the coupon rate equals 4 percent, and the bond's market price is $1,019.27. What is the bond's yield to maturity?

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Financial Management: The par value is 1000 the coupon rate equals 4 percent and
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