Computation of price of the bond

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Reference no: EM1311577

Recently Walt Disney issued a $1,000 five-year corporate bond at par. It will pay $35 in interest every six-month. There is another Disney bond that pays $20 interest every six-month and has two and a half years remaining before it matures with a face value of $1,000. What price should the existing bond be traded at when the new five-year bond issued?

Reference no: EM1311577

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