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Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 7 percent, has a YTM of 5 percent, and has
Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 7 percent, has a YTM of 5 percent, and has 13 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond pays a coupon of 5 percent, has a YTM of 7 percent, and also has 13 years to maturity. What is the price of each bond today? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Price of Miller Corporation bond Price of Modigliani Company bond If interest rates remain unchanged, what do you expect the prices of these bonds to be 1 year from now? In 4 years? In 9 years? In 11 years? In 13 years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Miller Corporation Bond Modigliani Company Bond Price of bond 1 year A A 4 years A A 9 years A A 11 years A A 13 years A A
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