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Bond A has the following terms: Coupon rate of interest (paid annually): 12 percent Principal: $1,000 Term to maturity: Seven years Bond B has the
Bond A has the following terms: Coupon rate of interest (paid annually): 12 percent Principal: $1,000 Term to maturity: Seven years Bond B has the following terms Coupon rate of interest (paid annually): 6 percent Principal: $1,000 Term to maturity: Seven years a. What should be the price of each bond if interest rate is 12 percent? Use Appendix B and Appendix D to answer the question. Round answers to the nearest dollar Price of bond A: $ Price of bond B:$ b. what will be the price of each bond if, after three years have elapsed, interest rate is 12 percent, Use Appendi Gnd Arendi or a question. Round your answers to the nearest dollar Price of bond A: $ Price of bond B:S 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 ans question. Round your answers to the nearest dollar Price of bond A:$ Price of bond B
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