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Miller Corporation has a premium bond making semiannual payments. The bond pays a 9 percent coupon, has a YTM of 7 percent, and has 13
Miller Corporation has a premium bond making semiannual payments. The bond pays a 9 percent coupon, has a YTM of 7 percent, and has 13 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond pays a 7 percent coupon, has a YTM of 9 percent, and also has 13 years to maturity. Assume interest rates remain unchanged.
Required: |
(a) | Calculate the price of Miller Corporation bond. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16)) |
Year | Bond price | |||
In 1 year | $ | |||
In 3 years | $ | |||
In 8 years | $ | |||
In 12 years | $ | |||
In 13 years | $ | |||
|
(b) | Calculate the price of Modigliani Company bond. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16)) |
Year | Bond price | |||
In 1 year | $ | |||
In 3 years | $ | |||
In 8 years | $ | |||
In 12 years | $ | |||
In 13 years | $ |
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