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Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 11 percent, has a YTM of 9 percent, and has
Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 11 percent, has a YTM of 9 percent, and has 11 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond pays a coupon of 9 percent, has a YTM of 11 percent, and also has 11 years to maturity. Both bonds have a par value of $1,000. What is the price of each bond today? If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 2 years? In 7 years? In 9 years? In 11 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 today 1 year 2 years 7 years 9 years 11 years
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