Chapter 7 Questions
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All else constant, a bond will sell at _____ when the coupon rate is _____ the yield to maturity.
a discount; less than
Weismann Company issued 9-year bonds a year ago at a coupon rate of 12 percent. The bonds make semiannual payments and have a par value of $1,000. If the YTM on these bonds is 11 percent, what is the current bond price?
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