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Midland Oil has $1,000 par value bonds outstanding at 18 percent interest. The bonds will mature in 20 years. Compute the current price of the
Midland Oil has $1,000 par value bonds outstanding at 18 percent interest. The bonds will mature in 20 years. Compute the current price of the bonds if the present yield to maturity is: (Do not round intermediate calculations. Round your final answers to 2 decimal places. Assume interest payments are annual.)
Bond Price
a) 10%
b) 11%
c) 12%
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