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Determine the price of a $1.2 million bond issue under each of the following independent assumptions: 1. Maturity 10 years, interest paid annually, stated rate

Determine the price of a $1.2 million bond issue under each of the following independent assumptions:

1. Maturity 10 years, interest paid annually, stated rate 4%, effective (market) rate 7%.

2. Maturity 10 years, interest paid semiannually, stated rate 4%, effective (market) rate 7%.

3. Maturity 10 years, interest paid semiannually, stated rate 7%, effective (market) rate 4%.

4. Maturity 20 years, interest paid semiannually, stated rate 7%, effective (market) rate 4%.

5. Maturity 20 years, interest paid semiannually, stated rate 7%, effective (market) rate 7%.

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