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$1,000 bond has a coupon of 7 percent and matures after twelve years. Assume that the bond pays interest annually. a. What would be the

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$1,000 bond has a coupon of 7 percent and matures after twelve years. Assume that the bond pays interest annually. a. What would be the bond's price if comparable debt yields 8 percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $ $ c. Why are the prices different in a and b ? d. What are the current yields and the yields to maturity in a and b ? Round your answers to two decimal places. The bond matures after twelve years: CY:YTM:%%

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