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Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 12 percent, has a YTM of 10 percent, and has
Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 12 percent, has a YTM of 10 percent, and has 18 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond pays a coupon of 10 percent, has a YTM of 12 percent, and also has 18 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 7 years? In 12 years? In 16 years? In 18 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 7 years 12 years 16 years 18 years
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