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The Garraty Company has two bond issues outstanding. Both bonds pay $100 in annual interest paid semiannually plus $1,000 at maturity. Bond L has a
The Garraty Company has two bond issues outstanding. Both bonds pay $100 in annual interest paid semiannually plus $1,000 at maturity. Bond L has a maturity of 15 years, and Bond S has a maturity of 2 years. What will be the value of each of these bonds when the going rate of interest is (1) 5%, (2) 8%, and (3) 12%. Assume that there are only four more interest payments on Bond S. Show work details
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