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An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual coupon. Bond L matures
An investor has two bonds in his portfolio that have a face value of $1,000 and pay an 11% annual coupon. Bond L matures in 10 years, while Bond S matures in 1 year. a. What will the value of the Bond L be if the going interest rate is 5%, 7%, and 12%? Assume that only one more interest payment is to be made on Bond S at its maturity and that 10 more payments are to be made on Bond L. Round your answers to the nearest cent. 5% 7% 12% Bond L $ $ $ 1177.63 1090.07 838.51 Bond S $ $ $ 1010.50 1005.00 981.82
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