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Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 10 percent, a YTM of 8 percent, and 20
Miller Corporation has a premium bond making semiannual payments. The bond has a coupon rate of 10 percent, a YTM of 8 percent, and 20 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond has a coupon rate of 8 percent, a YTM of 10 percent, and also has 20 years to maturity. Both bonds have a par value of $1,000 What is the price of each bond today? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g. 32.16.) Price of Miller bond Price of Modigliani bond If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 11 years? In 15 years? In 19 years? In 20 years? (Do not round intermediate calculations. Round your answers to 2 decimal places, e.g., 3216.) Price of bond in: 1 year 11 years 15 years 19 years 20 years Miller bond Modigliani bond
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