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A bond that matures in 14 years has a $1,000 par value. The annual coupon interest rate is 7 percent and the market's required yield to maturity on a comparable-risk bond is 18 percent. What would be the value of this bond if it paid interest annually? What would be the value of this bond if it paid interest semiannually?

a. The value of this bond if it paid interest annually would be $.

b. The value of this bond if it paid interest semiannually would be $

Financial Management, Finance

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