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Assume that a corporation's bonds have 8 years remaining to maturity. In addition, assume that the bonds have a $1000 face value, and the coupon interest rate is 7%. The bonds have a yield to maturity of 10%. Complete parts (a) and (b) below.

a) find out the market price of the bonds if interest is paid annually.

b) find out the market price of the bonds if interest is paid semiannually.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M922138

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