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An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 12% annual coupon. Bond L matures in
An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 12% annual coupon. Bond L matures in 11 years, while Bond S matures in 1 year. Assume that only one more interest payment is to be made on Bond S at its maturity and that 11 more payments are to be made on Bond L. a. What will the value of the Bond L be if the going interest rate is 5%? Round your answer to the nearest cent. $ 1581.45 What will the value of the Bond S be if the going interest rate is 5%? Round your answer to the nearest cent. $ 1066.67 What will the value of the Bond L be if the going interest rate is 8%? Round your answer to the nearest cent. $ 1285.56 What will the value of the Bond S be if the going interest rate is 8%? Round your answer to the nearest cent. $ 1037.04 What will the value of the Bond L be if the going interest rate is 11%? Round your answer to the nearest cent. $ What will the value of the Bond S be if the going interest rate is 11%? Round your answer to the nearest cent. $
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