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The Milken Investment Fund buys 74 bonds of the Levine Corporation through its broker. The bonds pay 6 percent annual interest. The yield to maturity
The Milken Investment Fund buys 74 bonds of the Levine Corporation through its broker. The bonds pay 6 percent annual interest. The yield to maturity (market rate of interest) is 8 percent. The bonds have a 10-year maturity. Assume the par value of the bonds is $1,000. Using an assumption of semiannual interest payments, (Use a Financial calculator to arrive at the answers. Enter positive values as answers. Round the final answers to 2 decimal places.) a. Compute the price of the bond. Price of the bond b. Compute the total value of the 74 bonds. Total value $
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