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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 $40,000 and matures in 20 years. The bond makes no payments for the first
six years and then pays $2,000 semiannually for the subsequent eight years, and finally
pays $2,500 semiannually for the last six years. Bond B also has a face value of $40,000 and a maturity of 20 years; it makes no coupon payments over the life of the bond. If the
required rate of return is 12 percent compounded semiannually, what is the current price of
Bond A? of Bond B?

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