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14. I AM GOOD Inc. is planning to issue bonds that will pay 6% semiannual interest and mature in 10 years. a. How much will

14. I AM GOOD Inc. is planning to issue bonds that will pay 6% semiannual interest and mature in 10 years.

a. How much will investors be willing to pay for a $1,000 bond if the prevailing market yield rate is 4%?

b. How much will investors be willing to pay for a $1,000 bond if the prevailing market interest rate is 8%?

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