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The University of California has two bonds outstanding. Both issues have the same credit rating, a face value of $1,000 and a coupon rate of

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The University of California has two bonds outstanding. Both issues have the same credit rating, a face value of $1,000 and a coupon rate of 3%. Coupons are paid twice a year. Bond A matures in 1 year, while bond B matures in 30 years. The market interest rate for similar bonds is 11% (quoted as a semi-annual simple interest rate, so 5.5% per 6-month period). Attempt 1/2 for 10 pts. Part 1 What is the price of bond A? 0+ decimals Submit IBM Attempt 1/2 for 10 pts. Part 2 What is the price of bond B? 0+ decimals

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