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Bond A has the following terms: - Coupon rate of interest (paid annually): 8 percent - Principal: $1,000 - Term to maturity: Ten years Bond

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Bond A has the following terms: - Coupon rate of interest (paid annually): 8 percent - Principal: $1,000 - Term to maturity: Ten years Bond B has the following terms: - Coupon rate of interest (paid annually): 4 percent - Principal: $1,000 - Term to maturity: Ten years a. What should be the price of each bond if interest rate is 8 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 : $ Price of bond A : $ Price of bond B:$ Price of bond A : $ Price of bond B : $

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