Bond has five years to maturity and pays interest

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Reference no: EM131859915

A bond has 5 years to maturity and pays interest of $20 each half-year.

What is its maximum price?

Another bond with 5 years to maturity pays interest of $24 each half year.

What is its maximum price? How do these maximum prices compare?

Is this reasonable? Why?

(This question does not have interest rate, face value, and rate of return)

Reference no: EM131859915

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