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Bonds in the market

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Vortex Corp Class B bonds have a 10-year maturity, $1,000 face value, and a 5% annual coupon rate paid semi-annually. These bonds are currently traded at their par value. Vortex's Class A bonds have the same maturity and face value, but the Class A bonds pay a 3 % annual coupon. What should be the price of A" bonds in the market? (Hint: Note that both bonds were issued by the same company; they just have different features)

Reference no: EM133058560

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