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6 years ago XYZ International issued some 33 -year zero-coupon bonds that were priced with amarket's required yield to maturity of 9 percent and a
6 years ago XYZ International issued some 33-year zero-coupon bonds that were priced with amarket's required yield to maturity of 9 percent and a par value of $1,000. What did these bonds sell for when they wereissued? Now that 6 years have passed and themarket's required yield to maturity on these bonds has climbed to 11 percent, what are they sellingfor? If themarket's required yield to maturity had fallen to 7 percent, what would they have been sellingfor?
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