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Assume that the Financial Management​ Corporation's ​$1000 par-value bond has a 7.400% ​coupon, matures on May​...

Assume that the Financial Management​ Corporation's ​$1000 par-value bond has a 7.400% ​coupon, matures on May​ 15, 2027, has a current price quote of 110.636 and a yield to maturity​ (YTM) of 6.934%. Given this​ information, answer the following​ questions:

a.  What was the dollar price of the​ bond?

b.  What is the ​bond's current​ yield?

c.  Is the bond selling at​ par, at a​ discount, or at a​ premium? ​ Why?

d.  Compare the​ bond's current yield calculated in part b to its YTM and explain why they differ.

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jeff jeffy answered 8 months ago
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