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Posted on Aug 02, 2024

Suppose Ford Motor Company sold an issue of bonds with a 1 5 - year maturity and an 8 . 6 % coupon rate,paid annually.

Suppose Ford Motor Company sold an issue of bonds with a

15 -

year maturity and an

8.6 %

coupon rate,paid annually. Two years before maturity, the going rate of interest on bonds such as these increased to

9.6 % .

At what price would the bonds sell?

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