Interest payments-what is its yield to maturity

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A twenty-year, 5% coupon, $1,000 bond is for sale. It makes annual (once per year) interest payments. (a) What cash flow can I expect if I buy the bond? (b) If its yield to maturity is 7%, what is its price? (c) If its price is $1,080.20, what is its yield to maturity? (d) If the bond in part (b) is stripped and the coupon payments sold to one investor while the face value payment is sold to another, what does each pay? SHOW WORK

Reference no: EM13729815

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