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What Is the Price Today of a Two-Year,default-Free Security with a Face

Question 71

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What is the price today of a two-year,default-free security with a face value of $1000 and an annual coupon rate of 5.75%? Does this bond trade at a discount,premium,or at par?

Correct Answer:

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$1004.46
P = $57.50/1.058 + $1...

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