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ABC company has a series of $500 par value bonds outstanding. Each bond pays interest semi-annually and carries an annual coupon rate of 6%. Some

ABC company has a series of $500 par value bonds outstanding. Each bond pays interest semi-annually and carries an annual coupon rate of 6%. Some bonds are due in 5 years and others are due in 10 year. If the required rate of return is 10%, what is the current price of: a) the bonds with 5 years to maturity b) the bonds with the 10 years to maturity c) explain the relationship between the number of years until a bond matures and its price

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