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The bonds of GlaxoSmithKline plc have a remaining term to maturity of 15 years, annual coupon interest of 10%, semiannual interest payments and a par

The bonds of GlaxoSmithKline plc have a remaining term to maturity of 15 years, annual coupon interest of 10%, semiannual interest payments and a par value of $1,000.

a) If similar bonds are currently trading with a 5 percent markets required yield to maturity, what is the current market price of the bonds?

b) Are the bonds of THD Inc. premium or discount bonds? Explain why.

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