Compute the price of bond based on semiannual analysis

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Reference no: EM132021996

You are called in as a financial and asus to appraise the bonds of orseln's clothing store. The $1000 per value bond have a "d annual interest rate of 10% which is paid semi annually. The yield to maturity on the bond as 10% annual interests there are 10 years to maturity.

a. compute the price of the bond based on semiannual analysis.

b. with 5 years to maturity, if yield to maturity goes down substantially to 10%, what will be the new price of bonds?

Reference no: EM132021996

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