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Assume all bonds pay interest semiannually. 2. Calculate the market price of a $1,000 face value...

Assume all bonds pay interest semiannually.

2. Calculate the market price of a $1,000 face value bond under the following conditions.

      Coupon Time Until Current

       Rate Maturity Discount Rate

  a. 12% 15 yrs 10%

  b. 7% 5 yrs 12%

  c. 9% 25 yrs 6%

  d. 14%. 30 yrs 9%

  e. 5% 6 yrs. 8%


3. What is the current yield on each of the bonds in the previous problem.

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