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A. The XY Company's bonds mature in 15 years, have a par value of $1,000 and an annual coupon rate of 13%. Interest rates are

A. The XY Company's bonds mature in 15 years, have a par value of $1,000 and an annual coupon rate of 13%. Interest rates are paid semiannually. The market interest rate are now is 10%. What is the intrinsic price of these bonds? Show the Intrinsic Value.

B. Compute the Discount or the Premium for the bond

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