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The Federal Motors Company has a $1,000 par value bond outstanding that pays 8 percent annual interest. The current yield to maturity on such bonds

The Federal Motors Company has a $1,000 par value bond outstanding that pays 8 percent annual interest. The current yield to maturity on such bonds in the market is 10 percent. Compute the price of the bonds for these maturity dates:

a) 20 years.

b) 10 years.

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