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The Mariposa Co. has two bonds outstanding. One was issued 25 years ago at a coupon rate of 9%. The other was issued 5 years ago at a coupon rate of 9%. Both bonds were originally issued with terms of 30 years and face values of $1,000. The going interest rate is 12.5% today. What are the prices of the two bonds at this time? Assume bond coupons are paid semiannually. Round the answers to the nearest cent.

Old: $

New: $

Financial Management, Finance

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