(Answered) The altoona co issued a 25-year bond 5 years agowith a face

Finance

The Altoona Co. issued a 25-year bond 5 years agowith a face value of $1,000. The bond pays interest semiannually at a 10% annual rate.

a. What is the bond's price today if the interest rate on comparable new issues is 12%?

b. What is the price today if the interest rate is 8%?

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