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What interest payments do bondholders receive each year

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Question 1: A general power bond carries a coupon rate of 8.4% has nine years until maturity and sales at a yield to maturity of 7.4% assume annual interest payments.

Problem a) What interest payments do bondholders receive each year?

Problem b) At what price does the bond sell?

Problem c) What will happen to the bond price if the yield to maturity falls to 6.4%?

Problem d) If the yield to maturity falls to 6.4% will the current yield be less or more than the yield to maturity?

Reference no: EM132463307

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