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ABC Corporation has two outstanding bond issues: Issue Term to Maturity Coupon Rate Current Market Price A 7 years 8% $946.50 B 10 years 3%
ABC Corporation has two outstanding bond issues:
Issue Term to Maturity Coupon Rate Current Market Price
A 7 years 8% $946.50
B 10 years 3% $834.90
Assume yields fall by 1%. Based on this information, compute the price migration of the bond and determine the bond that appreciates the most in price. Assume semin-annual bonds.
Fill in the blank. Round two decimal places.
Bond A new price =
Bond B new price =
Which bond appreciated more in price=
Please provide steps to calculate using BA II plus
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Short Term Financial Management
Authors: Ned C Hill
1st Edition
0023548207, 978-0023548208
