a 20-year bond pays a coupon of 8 percent per


A 20-year bond pays a coupon of 8 percent per year (coupon paid semi-annually). The bond has a par value of $1000. What will the bond sell for if the nominal YTM is:

a) 10 percent
b) 6 percent
c) 8 percent

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Cost Accounting: a 20-year bond pays a coupon of 8 percent per
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