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Pharoah Corp is issuing a 10-year bond with a coupon rate of 12 percent. The interest rate for similar bonds is currently 7 percent. Assuming

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Pharoah Corp is issuing a 10-year bond with a coupon rate of 12 percent. The interest rate for similar bonds is currently 7 percent. Assuming annual payments, what is the value of the bond? Assume face value is $1,000. (Round answer to 2 decimal places, e.g. 15.25.) Value of bond Michelle Walker is interested in buying a five-year zero coupon bond with a face value of $1,000. She understands that the market interest rate for similar investments is 10.0 percent. Assume annual coupon payments. What is the current value of this bond? (Round answer to 2 decimal places, e.g. 15.25.) Current value of bond You are considering investing in a 10-year zero coupon bond that compounds interest semiannually. If the current market rate is 6.05 percent, what is the maximum price you should have to pay for this bond? Assume face value is $1,000. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.8. 52.75.) Maximum price to be paid

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