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Assume that Bond A is a 7 -year bond, pays 9 percent interest on a semi-annual basis, and currently sells at par value ($1,000). Assume

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Assume that Bond A is a 7 -year bond, pays 9 percent interest on a semi-annual basis, and currently sells at par value ($1,000). Assume that Bond B is also a 7 -year bond, has the same risk as Bond A. but pays 8 percent interest on an annual basis. Assuming that both bonds are non-callable and have face values of $1,000, determine the price of Bond B (Hint: since the risk is the same, the two bonds must have the same effective rate). $939.89 $933.75 $945.28 $951.13 $957.52

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