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Assume you hove a one-year investment horizon and are trying to choose among three bonds. All have the same degree of default the $70 coupon

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Assume you hove a one-year investment horizon and are trying to choose among three bonds. All have the same degree of default the $70 coupon once per year. The third has a 9.0% coupon rate and pays the $90 coupon once per year, Assume that all bonds are compounded annually. Required: a. If all three bonds are now priced to yield 7.0% to maturity, what are their prices? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. If you expect their yieids to maturity to be 7.0% at the beginning of next year, what will their prices be then? (Do not round intermediate calculations. Round your answers to 2 decimal places.) c. What is your rate of return on each bond during the one-year holding period? (Do not round intermediate calculations. Round you answers to 2 decimal pleces.)

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