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Problem 13-08 Bond A has the following terms: Coupon rate of interest (paid annually): 12 percent Principal: $1,000 Term to maturity: Ten years Bond B

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Problem 13-08 Bond A has the following terms: Coupon rate of interest (paid annually): 12 percent Principal: $1,000 Term to maturity: Ten years Bond B has the following terms: Coupon rate of interest (paid annually): 6 percent . Principal: $1,000 Term to maturity: Ten years . What should be the price of each bond If interest rate is 12 percent? Use Appendix 8 and Appendix D to answer the question. Round your answers to the nearest dollar Price of bond A: Price of bond B: b. What will be the price of each bond after five years have elapsed, Interest rate is 12 percent? Use Appendix B and Appendix D to answer the question. Round your answers to the nearest dollar Price of bond AIS Price of bond : $ c. What will be the price of each bond it, after ten years have elapred, interest rate is 10 percent? Use Appendix B and Appendix D to answer the question, Round your answers to the nearest dollar Price of bond AS Price of bond : $

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