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1. A1B2 Corporation issued a new series of bonds on January 1, 2004. The bonds were sold at par ($1,000), had a 12% coupon per

1. A1B2 Corporation issued a new series of bonds on January 1, 2004. The bonds were sold at par ($1,000), had a 12% coupon per annum, and will mature in 30 years, on December 31, 2033. Coupon payments are made semiannually (on June 30 and December 31).

What was the price of the bonds on January 1, 2009, 5 years later, assuming that market interest rates had fallen to 10%? and Find the current yield, capital gains yield, and total return on January 1, 2009

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