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QUESTION
A bond with a face value of $1,000 has a current yield of 7% and a coupon rate of 8%.
A bond with a face value of $1,000 has a current yield of 7% and a coupon rate of 8%. What is the bond’s price
AnswerFace value of a BondCoupon rateAnnual Interest =$1000=8%=$1000*8%=$80=7% Current YieldBond priceLet the price of the Bond =$XCurrent Yield = Annual Interest/Price.07=$80/$X.07*$X...