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A bond that matures in 13 years has a $1,000 par value. The annual coupon interest rate is 12 percent and the market's required yield
A bond that matures in
13
years has a
$1,000
par value. The annual coupon interest rate is
12
percent and the market's required yield to maturity on a comparable-risk bond is
16
percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?
a.The value of this bond if it paid interest annually would be
$enter your response here.
(Round to the nearest cent.)
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