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plz type the answer down AND SHOW STEP BY STEP,thanks a lot! Wonder Coffee is currently issuing both 6-year (Bond 1) and 12-year (Bond 2)
plz type the answer down AND SHOW STEP BY STEP,thanks a lot!
- Wonder Coffee is currently issuing both 6-year (Bond 1) and 12-year (Bond 2) bonds at par. The bonds each pay 5.5 percent annual interest and have face values of $1,000. You decide to purchase one of each of these bonds. Assume the yield to maturity on each of these bonds is 6.9 percent one year from now. Given this,
- calculate the values of Bond 1 and Bond 2.
2.calculate the percentage of price appreciation/depreciation on Bond 1 and Bond 2.
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