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Bond A has the following terms: - Coupon rate of interest (paid annually): 10 percent - Principal: $1,000 - Term to maturity: Seven years Bond

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Bond A has the following terms: - Coupon rate of interest (paid annually): 10 percent - Principal: $1,000 - Term to maturity: Seven years Bond B has the following terms: - Coupon rate of interest (paid annually): 5 percent - Principal: $1,000 - Term to maturity: Seven years a. What should be the price of each bond if interest rate is 10 percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar Price of bond A: $ Price of bond B: 5 b. What will be the price of each bond if, after three years have elapsed, interest rate. is 10 percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollac: Price of bond A: \$ Price of bond B: $ c. What will be the price of each bond if, after seven years have elapsed, interest rate is 9 percent? Use Appendix B and Appendix D to answer the question, Round your answers to the nearest dollar. Price of bond A: $ Price of bond 8 ; 5

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