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Determine the price of the following bonds. Identify if the bond is trading at a discount, par or premium. Provide economic intuition for why one
Determine the price of the following bonds. Identify if the bond is trading at a discount, par or premium. Provide economic intuition for why one bond priced is lower than the other. a) par value of $1,000, maturity of 30 years, a coupon rate of 5% being paid to bondholders semiannually, and a YTM of 6% b) par value of $1,000, maturity of 20 years, a coupon rate of 10% being paid to bondholders annually, and a YTM of 8%
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