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Ron Rhodes calls his broker to inquire about purchasing a bond of Golden Years Recreation Corporation. His broker quotes a price of 51100 Ron is

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Ron Rhodes calls his broker to inquire about purchasing a bond of Golden Years Recreation Corporation. His broker quotes a price of 51100 Ron is concemed that the bond might be overpriced based on the facts involved. The $1.000 par value bond pays 10 percent annual interest payable semiannually, and has 15 years remaining unti maturity. The current yield to maturity on similar tonds is B percent a. Compute the new price of the bond (Use a Financial calculator to arrive at the answers. Do not round Intermediate calculations. Round the final answer to 2 decimal places) New price of the bond b. Do you think the bond is over rice NO Yes

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