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Mark Goldsmith's broker has shown him two bonds issued by different companies. Each has a maturity of 5 years, a par value of $1,000, and
Mark Goldsmith's broker has shown him two bonds issued by different companies. Each has a maturity of
5
years, a par value of
$1,000,
and a yield to maturity of
8.70 %
The first bond is issued by Crabbe Waste Disposal and has a coupon interest rate of
6.319%
paid annually. The second bond, issued by Malfoy Enterprises, has a coupon interest rate of
8.80%
paid annually.
Calculate the selling price for each of the bonds.
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