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Please solve clearly with steps Q6: Apple Company's bonds have maturity period of five years. The bonds have a $1000 face value, the coupon rate
Please solve clearly with steps Q6: Apple Company's bonds have maturity period of five years. The bonds have a $1000 face value, the coupon rate is 18% per year paid monthly. Suppose you purchased the bond for $920. Three years after from the date of purchase, the market interest rate on such bonds decreases to 12%. (a) At what price will the bonds sell after these three years? (b) If you want to make a 24% return on this investment, three years after the date of purchase, what would be your selling price? (c) Would you be able to sell the bond with the price you found in part (b)? Explain your reasoning
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