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Bonds M,N, and Q all have a face value of $1,000 and all have 20 years remaining until maturity. Their respective coupon rates are 7%,6%,
Bonds M,N, and Q all have a face value of $1,000 and all have 20 years remaining until maturity. Their respective coupon rates are 7%,6%, and 5%. Calculate their market prices if the rate of return required by the market on these bonds is 8% compounded semiannually. Summarize the observed pattern or trend in a brief statement. (Round your answers to the nearest cent.) Assume that: - Bond interest is paid semiannually. - The bond was originally issued at its face value. - Bonds are redeemed at their face value at maturity. - Market rates of return are compounded semiannually
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