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ABC Corp. has two different bonds currently outstanding. Bond X and bond Y have a face value of $20,000 and mature in 20years. Bond X
ABC Corp. has two different bonds currently outstanding. Bond X and bond Y have a face value of $20,000 and mature in 20years. Bond X makes no payments for the first six years, then pays $900 every six months over the subsequent eight years, and finally pays $1,300 every six months over the last six years. Bond Y makes no coupon payments over the life of the bond. If the required return on both these bonds is 6 percent compounded semiannually, what are the current prices of Bond X and Bond Y?
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