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The Shamrock Corporation has just issued a $1,000 par value zero-coupon bond with an 8% yield to maturity, due to mature 16 years from
The Shamrock Corporation has just issued a $1,000 par value zero-coupon bond with an 8% yield to maturity, due to mature 16 years from today (assume semiannual compounding). Do not round intermediate calculations. Round your answers to the nearest cent. a. What is the market price of the bond? $ b. If interest rates remain constant, what will be the price of the bond in five years? $ c. If interest rates rise to 12%, what will be the price of the bond in five years? $
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