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Zero Coupon Bond Valuation and Maturity Dates Anthony has a choice of one of two bonds to purchase: a 5-year, $1,000 face value bond with

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Zero Coupon Bond Valuation and Maturity Dates Anthony has a choice of one of two bonds to purchase: a 5-year, $1,000 face value bond with 6% coupons, paid semiannually, or a 5-year, $1,000 face value zero coupon. Both have a yield to maturity of 5.5%. a. How much will each bond cost? b. How much would Anthony pay for similar bonds, assuming a flat yield curve, if they were available in maturity dates of 10 years? 15 years? c. Explain why the zero coupon bond prices change more than the regular bonds

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