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A firm has an issue of $1,000 par value bonds with a 12 percent coupon rate outstanding. The issue pays interest annually and has 10
A firm has an issue of $1,000 par value bonds with a 12 percent coupon rate outstanding. The issue pays interest annually and has 10 years remaining to its maturity date. If bonds market interest rate is 8 percent, the firmss bond price will be $1.000 C $805.20 51.115.50 $1,268.40 Consider two bonds, Bond A and Bond B, both with a coupon rate of 10% and a yield to maturity of 9%. These are standard bonds with a face value of $1,000 and with semiannual coupon payments. Bond A matures in 5 years; Bond B matures in 10 years. What is the price of each bond? Bond A $1039.56 and Bond B $1065.03 Bond A 51100.22 and Bond B $1122.23 Bond A $1140.56 and Bond B $1156.62 Bond A 1157.9 and Bond B $1166.9
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