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1) Firm A issued 12-year bonds with a par value of $1,000 two years ago at a 9 coupon rate, paid semiannually. The yield to

1) Firm A issued 12-year bonds with a par value of $1,000 two years ago at a 9 coupon rate, paid semiannually. The yield to maturity on these bonds is 8 percent.

a)What is the present value of the coupons?

b)What is the present value of the face value?

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