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1.Value a 20-yr semi-annual, non-callable bond that pays coupons of 6% assuming market interest rates are 8%. 2. Assume that a 15-year semi-annual, 8% bond

1.Value a 20-yr semi-annual, non-callable bond that pays coupons of 6% assuming market interest rates are 8%.

2. Assume that a 15-year semi-annual, 8% bond is callable after 10 years at 103% of par value and the discount rate in todays market is 6%. Using the price-to-worst method, what is the value of this bond?

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