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P11.4 Using semi annual compounding, find the prices of the following bonds: a. A 10% coupon 15 year bond priced to yield 7% b. A

P11.4 Using semi annual compounding, find the prices of the following bonds:

a. A 10% coupon 15 year bond priced to yield 7%

b. A 6% coupon 10 year bond priced to yield 10%

c. An 11% coupon 20 year bond priced to yield 9%

Repeat the problem using annual compounding. Then comment on the differences you find in the prices of the bonds.

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