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6-29. Dot Company has 2$1,000 bond that will mature in 20 years. The coupon rate is 8 percent, and the bond pays interest semiannually. If

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6-29. Dot Company has 2$1,000 bond that will mature in 20 years. The coupon rate is 8 percent, and the bond pays interest semiannually. If the market price of the bond is $699, what is its required rate of return? 6-30. a. The ABE Company also has 2$1,000 bond outstanding that matures in 20 years and pays a 10 percent coupon, interest paid semiannually. If this bond is viewed by investors as being equally as risky as the Dot. Company bond in Problem 629, what should the market price of the ABE bond be? b. If required rates of return stay the same; what should the market prices of the bonds be 10 years from now? c. If interest rates for bonds like Dot and ABE changed to 16 percent compounded semiannually, and maturity is 20 years away, what would the current markef prices of these bonds be

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