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McCurdy Co.'s Class Q bonds have a 12-year maturity, $1,000 par value, and a 11.5% coupon paid semiannually ( 5.75% each 6 months), and those
McCurdy Co.'s Class Q bonds have a 12-year maturity, $1,000 par value, and a 11.5% coupon paid semiannually ( 5.75% each 6 months), and those bonds sell at their par value. McCurdy's Class P bonds have the same risk, maturity, and par value, but the p bonds pay a 11.5\% annual coupon. Neither bond is callable. At what price should the annual payment bond sell? Select the correct answer. a. $988.76 b. $974.72 c. $984.08 d. $970.04 e. $979.40
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