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Assets, Inc., plans to issue $6 million of bonds with a coupon rate of 9 percent, a par value of $1,000, semiannual coupons, and 15

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Assets, Inc., plans to issue $6 million of bonds with a coupon rate of 9 percent, a par value of $1,000, semiannual coupons, and 15 years to maturity. The current market interest rate on these bonds is 8 percent. In one year, the interest rate on the bonds will be either 12 percent or 8 percent with equal probability. Assume investors are risk- neutral. a. If the bonds are noncallable, what is the price of the bonds today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Answer is complete but not entirely correct. Price of the bonds $ 954.99 % Assets Inc, plans to issue $6 million of bonds with a coupon rate of 9 percent a par value of $1000. semiannual coupons, and 15 years to maturity. The current market Interest rate on these bonds is 8 percent. In one year the interest rate on the bonds will be either 12 percent or 8 percent with equal pr obability Assume investors are risk. neutral a. If the bonds are noncallable. what is the price of the bonds today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g.. 32.16.) & Answer is complete but not entirely correct. Price of the bonds 837.59 b. If the bonds are callable one year from today at $1,060, will their price be greater or less than the price you computed in part (a)? Lesser Greater Assets, Inc., plans to issue $6 million of bonds with a coupon rate of 9 percent, a par value of $1,000, semiannual coupons, and 15 years to maturity. The current market interest rate on these bonds is 8 percent. In one year, the interest rate on the bonds will be either 12 percent or 8 percent with equal probability. Assume investors are risk. neutral a. If the bonds are noncallable, what is the price of the bonds today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) * Answer is complete but not entirely correct. Price of the bonds 1.086.46 b. If the bonds are callable one year from today at $1,060. Will their price be greater om less than the price you computed in part (a)? Lesser Greater

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