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FYI bonds have a par value of $1,000. The bonds pay $40 in interest every six months and will mature in 10 years. (a)Calculate the

FYI bonds have a par value of $1,000. The bonds pay $40 in interest every six months and will mature in 10 years.

(a)Calculate the price if the yield to maturity on the bonds is 7, 8, and 9 percent, respectively.

(b)Explain the impact on price if the required rate of return decreases.

(10 marks)

"i don't know how to calculate this 3 question, hope can with formula and also workings so that i can more understand thank you"

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