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A General electric bond carries a coupon rate of 8%, has 9 years until maturity, and sells a yield to maturity of 7%.

1. What interest payments do bondholders receive each year? 

2. At what price does the bond sell? (Assume annual interest payments).

3. What will happen to the bond price if the yield to maturity falls to 6%?

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Egie Boy Cauba
Egie Boy CaubaLv5
22 Jan 2021

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