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Using semiannual compounding, find the prices of the following bonds. A 10.5%, 15-year bond priced to yield 8% A 7%, 10-year bond priced to yield

Using semiannual compounding, find the prices of the following bonds.

  1. A 10.5%, 15-year bond priced to yield 8%

  2. A 7%, 10-year bond priced to yield 8%

  3. A 12%, 20-year bond priced at 10%

Repeat the problem using annual compounding. Then comment on the differences you found in the prices of the bonds.

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