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Assume that Target's and Kmart have similar $1,000 par value bond issues outstanding. The bonds are equally risky. The Kmart bond has an annual coupon

Assume that Target's and Kmart have similar $1,000 par value bond issues outstanding. The bonds are equally risky. The Kmart bond has an annual coupon rate of 8 percent and matures 20 years from today. The Target 's bond has a coupon rate of 8 percent, with interest paid semiannually, and it also matures in 20 years. If the nominal required rate of return is 12 percent for both bonds, what is the difference in current market prices of the two bonds?

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