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Chaves Corporation has 7% coupon bonds on the market with a par of $1000 and 8 years left to maturity. The bonds make a semiannual interest payments. If the market interest rate on these bonds is 6%, what is the current bond price?

Chaves Corporation also has a zero coupon bonds on the market with a par of $1000 and 8 years left to maturity. If the market interest rate of these bonds is 6%, what is the current bond price? ( Use the semi annual interest payment model). Please show your work.

Financial Management, Finance

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