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Doisneau 20-year bonds have an annual coupon interest of 12 percent, make interest payments on a semiannual basis, and have a $1,000 par value. If

Doisneau

20-year

bonds have an annual coupon interest of

12

percent, make interest payments on a semiannual basis, and have a

$1,000

par value. If the bonds are trading with a market's required yield to maturity of

16

percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds?

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