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A $1,000 bond has a coupon of 8 percent and matures after ten years. Assume that the bond pays interest annually. What would be the

A $1,000 bond has a coupon of 8 percent and matures after ten years. Assume that the bond pays interest annually.

  1. What would be the bond's price if comparable debt yields 10 percent? $
  2. What would be the price if comparable debt yields 10 percent and the bond matures after five years? $

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