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An investor has two bonds in his portfolo that have a face value of $1,000 and pay a 10% annual coupon, 8 ond L marures

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An investor has two bonds in his portfolo that have a face value of $1,000 and pay a 10% annual coupon, 8 ond L marures in 16 yearsy whie Bond 5 mafures in 1 year. a. What wil the value of the gond L be if the gaing interest rate is 5%,7%, and 11%. Assume that ony ane mare interest payment is to be made on Bond 5 at Ts maturity nad that 16 more payments are to be made on bond 1 . Mound your andwers to tive nearest sent

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