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4 The 25-year A-rated bonds of Polly Cracker Company were initially issued at a 13 percent yield (paid semiannually). After 10 years, the bonds
4 The 25-year A-rated bonds of Polly Cracker Company were initially issued at a 13 percent yield (paid semiannually). After 10 years, the bonds have been upgraded to AA. Such bonds are currently yielding 10 percent (semiannual compounding). Assume the par value of the bonds is $1,000. Determine the price of a Polly Cracker bond. (Use a Financial calculator to arrive at the answer. Round the final answer to 2 decimal places.) Price of the bonds $
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Personal Financial Planning
Authors: Lawrence J. Gitman, Michael D. Joehnk, Randy Billingsley
13th edition
1111971633, 978-1111971632
