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Explain the term Bond valuation
Bond coupon payment
Fish & Chips Inc. has two bond issues outstanding, and both sell for $701.22. The first issue has an annual coupon rate of 8 percent and 20 years to maturity. The second has an identical yield to maturity as the first bond, but only 5 years until maturity. Both issues pay interest annually. What is the annual interest payment on the second issue?
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