Compute the price of bonds based on semiannual analysis

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Heather Smith is considering a bond investment in Locklear Airlines. The $1,000 par value bonds have a quotes annual interest rate of 7 percent and the interest is paid semiannually. The yield to maturity on the bonds is 10 percent annual interest. There are 10 years to maturity.

Problem 1: Compute the price of bonds based on semiannual analysis.

Reference no: EM132705089

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