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s. Brooke owns two n-year non-callable bonds (Bond A and Bond 1B) that have a face value of $1000. The redemption value equals the face

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s. Brooke owns two n-year non-callable bonds (Bond A and Bond 1B) that have a face value of $1000. The redemption value equals the face value for both bonds. Bond A pays semi-annual coupons at an annual coupon rate of 6%. It has a current price of 1071.77 and a yield-to-maturity of i. (i is a nominal annual rate convertible semi- annually) an annual coupon rate of 8%. It has a current price Bond B pays semi-annual coupons at of 1215.30 and the same yield-to-maturity of i Calculate the price of Bond A ir it had a yield-to-maturity, expressed as a nominal annual rate convertible semi-annually, of i-1%

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