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An investor owns a $1000 par value 10% bond with semiannual coupons. The bond will mature at par at the end of 10 years. The
An investor owns a $1000 par value 10% bond with semiannual coupons. The bond will mature at par at the end of 10 years. The investor decides that an 8-year bond would be preferable. Current yield rates are 7% convertible semiannually. The investor uses the proceeds from the sale of the 10% bond to purchase a 6% bond with semiannual coupons, maturing at par at the end of 8 years. (Please enter your answer with 2 decimal places) a) Find the price of the 10% bond. P = $ 1213.18 b) Find the par value of the 8-year bond. F =$ 1213.18
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