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Doisneau 19-year bonds have an annual coupon interest of 9 percent, make interest payments on a semiannualbasis, and have a $1,000 par value. If the
Doisneau 19-year bonds have an annual coupon interest of 9 percent, make interest payments on a semiannualbasis, and have a $1,000 par value. If the bonds are trading with amarket's required yield to maturity of 15 percent, are these premium or discountbonds? Explain your answer. What is the price of thebonds?
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