What is the market value of the bond

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A) A US corporate bond was issued 5 years ago and will be matured in 2 years. The bond coupon rate and pays semi-annual coupon payment. Th par value is $1000. If the current interest rate is 10%, what is the market value of the bond?

B) A US corporate bond has a maturity of 10 years and callable in 5 years. The bond's price at issue was $1,050. The bond has a coupon rate of 7% with semi-annual payment. If the callable price of the bond is $1,070, what will be the yield to call (YTC)?

Reference no: EM132183824

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