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Problem 1 (See pages 296-301 and 307) Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. The company has a series
Problem 1 (See pages 296-301 and 307) Humana Inc. is a for-profit American health insurance company based in Louisville, Kentucky. The company has a series of $1,000 par value bonds outstanding. Each bond pays interest semi-annually and carries an annual coupon rate of 8% Some bonds are due in six (6) years while others are due in fifteen (15) years. If the required rate ofreturn on bonds is 6%, what is the current price of (PLEASE SHOW YOU RWORK) a) The bonds with 6 years to maturity? b) The bonds with 15 years to maturity
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