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The Sue Fleming Corporation has two different bonds currently outstanding. Bond A has a face value of $ 4 0 , 0 0 0 and
The Sue Fleming Corporation has two different bonds currently outstanding. Bond A has a
face value of $ and matures in years. The bond makes no payments for the first
six years and then pays $ semiannually for the subsequent eight years, and finally
pays $ semiannually for the last six years. Bond B also has a face value of $ and a maturity of years; it makes no coupon payments over the life of the bond. If the
required rate of return is percent compounded semiannually, what is the current price of
Bond A of Bond B
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