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I need work shown for part a, b, and c. (Bond price over time) 3M Corporation has out standing an issue of $1,000 face value,
I need work shown for part a, b, and c.
(Bond price over time) 3M Corporation has out standing an issue of $1,000 face value, 8 1/2 coupon bonds which mature in 15 years. Today, investors require a 14% rate of return. a Calculate the price of these bonds today. b Calculate the price of these bonds 5 years from now if market interest rates do not change. c Calculate the price of these bonds 5 years from now if investors required rate of return declines to 11%.I need work shown for part a, b, and cStep by Step Solution
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