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Calculate the current price of the bond

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Reference no: EM133120872

Madison Corporation has a $1000 face value bond outstanding paying annual interest of 7%. The bond matures in 20 years. If the present yield to maturity for this bond is 9%,

A. Calculate the current price of the bond using annual compounding.

B. Calculate the current price of the bond using semi-annual compounding

Reference no: EM133120872

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