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Using semiannual compounding, find the prices of the following bonds: a. A 10.9%, 15-year bond priced to yield 9.39%. b. A 5.5 %, 10-year bond
Using semiannual compounding, find the prices of the following bonds:
a. A 10.9%, 15-year bond priced to yield 9.39%.
b. A 5.5 %, 10-year bond priced to yield 7.1 %.
c. An 11.8 %, 20-year bond priced at 10.2 %.
Repeat the problem using annual compounding. Then comment on the differences you found in the prices of the bonds.
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