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Suppose Gomas Enterprises has issued a bond that pays 1 1 % interest ( $ 5 5 semiannual coupons ) , and the current market

Suppose Gomas Enterprises has issued a bond that pays 11% interest ($55 semiannual coupons), and the current market yield is 9%. F=1000
(a) If the bond matures in 20 years, compute its current price. What if the bond matures in 1 year?
(b) What do you notice when comparing the 2 prices and their components?

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