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1 1 An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 12%6 annual coupon. Bond L
1 1 An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 12%6 annual coupon. Bond L matures in 18 years, while Bond 5 matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 18 more payments are to be made on Bond L. a. What will the value of the Bond L be it the going interest rate is 5%4. Round your answer to the nearest cent. 3 What will the value of the Bond S be if the going interest rate is $%4 ? found your answer to the rearest cent. 5 What will the value of the Bond L be if the going interest rate is 10% ? Round your answer to the nearest cent. 5 What wil the value of the Bond 5 be if the ooing interest rate is. 10%67 Round your answer to the nearest cent. $ What will the value of the Bond L be if the going interest rate is 11 s? Round your answer to the nearest cent. What will the value of the Bond s be if the going interest rate is 11 s. Round your ansiver to the nearest cent. 3
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