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(Related to Checkpoint 9.3)(Bond valuation) Doisneau 19-year bonds have an annual coupon interest of 12 percent, make interest payments on a semiannual basis, and have
(Related to Checkpoint 9.3)(Bond valuation) Doisneau 19-year bonds have an annual coupon interest of 12 percent, make interest payments on a semiannual basis, and have a $1, 000 par value. If the bonds are trading with a market's required yield to maturity of 13 percent, are these premium or discount bonds? Explain your answer. What is the price of the bonds? a. If the bonds are trading with a yield to maturity of 13%, The price of the bonds is $___ (Round to the nearest cent.)
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