30. An already issued government bond pays 50 interest half-yearly. The bond matures in 7 years. Its
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30. An already issued government bond pays 50 interest half-yearly. The bond matures in 7 years. Its face value is 1,000. A newly issued bond, which pays 12 percent annually, can also be bought. How much would you like to pay for the old bond? How much would you pay for the bond if it is redeemed at a premium of 10 percent?
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