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SHOW ALL WORKS 1. ABC Corp. has a bond issue outstanding with an annual coupon of...

SHOW ALL WORKS

1. ABC Corp. has a bond issue outstanding with an annual coupon of 6%, made in annual payments, and 5 years remaining until maturity. The par value of the bond is $1000. Determine the current value of the bond if present market conditions justify a 12% yield. (10 points)

2. ABC Corp. has a bond issue outstanding with an annual coupon of 6%, made in semi-annual payments, and 7 years remaining until maturity. The par value of the bond is $1000. Determine the current value of the bond if present market conditions justify a 10% yield. (10 points)

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