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$1,000 par value bonds have an annual interest rate of 9% which is paid semiannually. yield to maturity on the bonds is 10% annual interest.
$1,000 par value bonds have an annual interest rate of 9% which is paid semiannually. yield to maturity on the bonds is 10% annual interest. there are 25 years to maturity.
a. compute the price of bonds based on semiannual analysis
b. with 20 years to maturity if yield to maturity goes fown substantially to 10% what will be the new price of the bonds?
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Financial Accounting
Authors: Dr Carl S. Warren, Dr James M. Reeve, Philip E. Fess
9th Edition
032418803X, 978-0324188035
