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(Bond valuation) You are exarrining thee bonds with a par value of $1,000 fyou roceve $1,000 at mulutity) and are oonoerned with whiat would tappen

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(Bond valuation) You are exarrining thee bonds with a par value of $1,000 fyou roceve $1,000 at mulutity) and are oonoerned with whiat would tappen to ther makeh value if interent rates (or the market diecourd rate) charged. The three bonds are Bond A - a bond with 6 yoars loft to matuetly that has an annual ooupon intorest nale of 11 percont, bel the interest is pase semiannualy. Bond B-a bond with B years iefit to maturty that has an annual coupen enterest rate of 11 porcerk, but the olotest is paid serisereaty. Bond C-a bond with 17 years left to matority that has an ampua coupon inteceot fate of 15 poicerk, tut the interiest is paid iernurrually. What would to the value of these bonds if the maket discouint rale were: a. 11 porcent por yoar compounded semianualty? b. 4 percent por yaar compounded semianuatil? c. 18 percent por yoar compounded semdanrually? d. What coservations can you make about these tesults? a. If the market discounl fate wese 11 porcent per yoar compoundod semiannuntly, the yalue of Bond A is ? (Found bo fix nearest cont.)

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