Pros and cons of using SDRs or another global currency

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1. Callaghan Motors' bonds have 15 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 6%, and the yield to maturity is 5%. What is the bond's current market price? Round your answer to the nearest cent.

2. Discuss the pros and cons of using SDRs or another global currency created by the IMF to replace the US dollar as the international reserve currency.

Reference no: EM132012500

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