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You have gathered the following data on three bonds: Bond Maturity Coupon % A 10 yrs 9 B 9 yrs 1 C 5 yrs 5
You have gathered the following data on three bonds:
Bond | Maturity | Coupon % |
A | 10 yrs | 9 |
B | 9 yrs | 1 |
C | 5 yrs | 5 |
If the market's required return on all three bonds is 6% what are the market prices of the bonds ( you can assume annual interest payments)
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