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(For 7 and 8) MSG Inc, sells an issue of bonds with a 10 year maturity, 1,000 face value, a 9% coupon rate, and annual

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(For 7 and 8) MSG Inc, sells an issue of bonds with a 10 year maturity, 1,000 face value, a 9% coupon rate, and annual coupon payments. 7. Two years after issue the interest rate falls to 6% what is the market price of the bonds at that point? 8. Suppose instead that two years after issue the interest rate rises to 12% what is the market price of the bonds at that point (For 9-12) ABC Inc. sells an issue of bonds with a 15 year maturity. 1.000 face value, a 8% coupon rate, and annual coupon payments. 9. Two years after issue the interest rate falls to 5% what is the market price of the bonds at that point? 10. Assume that interest rate falls to 5% but the bond pays semi-annual (every six months) coupon payments

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