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ABC Limousine Company has $1,000 par value bonds outstanding at a 10% coupon rate. The bonds will mature in 50 years. Compute the current price

ABC Limousine Company has $1,000 par value bonds outstanding at a 10% coupon rate. The bonds will mature in 50 years. Compute the current price of the bonds if the yield to maturity (YTM) is:

a. YTM = 5%. Must show work

b. YTM = 15%. Must show work

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