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1. Consider a zero-coupon bond with 20 years to maturity. What would be the price of the bond if the YTM is 6%? (semiannual compounding

1. Consider a zero-coupon bond with 20 years to maturity. What would be the price of the bond if the YTM is 6%? (semiannual compounding and 1000 of par are assumed)

2. The Morresy Company's bonds mature in 7years, have a par value of $1000 and make an annual coupon payment of $70. The market interest rate for the bonds is 8.5%. What is the bonds price?

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