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You are trying to price three bonds with par value of $1,000. All mature in 2 years. The first has an 6% coupon rate and
You are trying to price three bonds with par value of $1,000. All mature in 2 years. The first has an 6% coupon rate and pays the $60 coupon once per year. The second has an 8% coupon rate and pays the $80 coupon once per year. The third has a 10% coupon rate and pays the $100 coupon once per year. If all three bonds are now priced to yield 8% to maturity, what are their prices?
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