TraChem Corporation issues Series Z bonds and Series C bonds. Both bonds have par values...
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TraChem Corporation issues Series Z bonds and Series C bonds. Both bonds have par values of $ and investors trade both bonds at prices indicating a YTM of The Series Z is a zero coupon bond with a maturity in years. The Series C maturing in years, is a hybridized bond that pays no coupon for the first year; then pays $ every six months for three years six total payments; and finally makes four $ payments in the last two years.
What is the current price of a Series C bond? Hint: Even if you utilize formulas to solve this, you should lay out and discount the stream of cash flows as a check on your work.
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