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2 . The Longview Manufacturing Company just issued a $ 1 , 0 0 0 par zero - coupon bond with a 1 0 .

2. The Longview Manufacturing Company just issued a $1,000 par zero-coupon bond with a 10.5% yield to maturity, due to mature 12 years from today (assume semiannual compounding).
a. What is the market price of the bond?
b. If interest rates remain constant, what will the bond's price be in four years?
c. If interest rates fall to 8%, what will the bond's price be in four years?
d. If interest rates rise to 12%, what will the bond's price be in four years? Please do it on excel.

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