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Kent Corporation's Class Semi bonds have a 16-year maturity and an 8.0% coupon paid semiannually (4.0% each 6 months), and those bonds sell at their
Kent Corporation's Class Semi bonds have a 16-year maturity and an 8.0% coupon paid semiannually (4.0% each 6 months), and those bonds sell at their $1,000 par value. The firm's Class Ann bonds have the same risk, maturity, nominal interest rate, and par value, but these bonds pay interest annually. Neither bond is callable. At what price should the annual payment bond sell?
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