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Michael Sells His Bonds Your cousin Michael has $25,000 in US Steel bonds with a...

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Finance

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Michael Sells His Bonds Your cousin Michael has $25,000 in US Steel bonds with a 4% coupon and 18 years to maturity. Comparable market interest rates are now 6.5%. Use this information to answer the following two questions. You must show your work for full marks. Question 19 (2 points) What price would Michael currently get for his bonds in the bond market? Question 20 (2 points) Is this bond trading at a premium or a discount? What caused this to happen? Question 21 (2 points) What is this bond's current yield? Round your answer to two decimals Question 22 (1 point) What was likely the primary reason (investment goal) that Michael bought these bonds in the first place? Question 23 (1 point) What might be one reason that Michael would want to sell these bonds now, for this price, in the bond market

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