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please do part 3 only in 15 minutes please urgently... I'll give you up thumb definitely Problem 4 Intro The University of California has two
please do part 3 only in 15 minutes please urgently... I'll give you up thumb definitely
Problem 4 Intro The University of California has two bonds outstanding. Both issues have the same credit rating, a face value of $1,000 and a coupon rate of 4%. Coupons are paid twice a year. Bond A matures in 1 year, while bond B matures in 30 years. The market interest rate for similar bonds is 11% (quoted as a semi-annual simple interest rate, so 5.5% per 6-month period). Attempt 2/2 for 5 pts. Part 1 What is the price of bond A? 935.428 Correct Part 2 BAttempt 1/2 for 10 pts. What is the price of bond B? 0+ decimals Submit Show all parts Part 3 Now assume that yields increase to 14%. What is the price of bond A? p+ decimals Submit BAttempt 1/2 for 10 ptsStep by Step Solution
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