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A bond that matures in 11 years has a ​$1 comma 000 par value. The annual...

A bond that matures in 11 years has a ​$1 comma 000 par value. The annual coupon interest rate is 11 percent and the​ market's required yield to maturity on a​ comparable-risk bond is 16 percent. What would be the value of this bond if it paid interest​ annually? What would be the value of this bond if it paid interest​ semiannually?

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Expert Solution

Annual bond:

Value is $748.57.

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Semi annual bond:

Value is $744.98.

jeff jeffy answered 2 years ago
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