Is the bond trading in the secondary market at par

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Reference no: EM131976091

A corporate bond issued 5 years ago with a coupon rate of 7% is now selling in the secondary market for $960. The coupon interest is paid semi-annually.

a) What is the bond's par value?

b) Is the bond trading in the secondary market at par, at a discount, or at a premium?

c) If you own one of these bonds, how much interest will you earn each year?

Reference no: EM131976091

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