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(Bond valuation) You are examining three bonds with a pur value of $1,000 (you receive $1,000 at maturity) and are concerned with what would happen

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(Bond valuation) You are examining three bonds with a pur value of $1,000 (you receive $1,000 at maturity) and are concerned with what would happen to their market value Interest rates (or the market discount rate) changed The three bonds are Bond A-abond with 5 years left to maturity that has an annual coupon interest rate of 8 porcont, but the interest is paid semiannually Bond B-a bond with 11 years loftto maturity that has an annual coupon interest rate of 8 percent, but the interest is paid semiannually Bond Cabond with 16 years left to maturity that has an annual coupon interest rate of 8 percent, but the interest is paid semiannually What would be the value of these bonds if the market discount rate were 8 percent per year compounded semiannually? b. 5 percent per your compounded semiannually? c. 18 percent per year compounded semiannually d. What observations can you make about these results 1. the market discount rate were 3 percent per year compounded semiannually, the value of Bond AS (Round to the nearest ount)

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