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An investor needs to decide about investing in (Financial Assets) Bonds in his portfolio, Bond Alpha and Bond Beta. 1) Bond Alpha matures in 2

An investor needs to decide about investing in (Financial Assets) Bonds in his portfolio, Bond Alpha and Bond Beta. 1) Bond Alpha matures in 2 years, has a face value of $10,000, and a yield to maturity of 0.08 and yearly coupon rate 0.10. Bond A would be paid semiannual interest. 2) Bond Beta matures in 3 years, has a face value of $7,000, and a yield to maturity of 0.12 and yearly coupon rate 0.10. Bond B would be paid annual interest.

1) What should be the intrinsic price of Bond Alpha and Betas

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