Calculate the price of junk bond

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Calculate the price of a 10-year $50,000 "junk" bond that pays a coupon rate of 10% p.a. (semi-annual compounding) if the market yield is 18% p.a. compounding semi-annually.

A. $48,527.25

B. $31,742.90

C. $52,906.55

D. $43,586.35

Reference no: EM131524982

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