Compute the price of the 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 quoted annual interest rate of 8 percent and the interest is paid semiannually. The yield to maturity on the bonds is 12 percent annual interest. There are 10 years to maturity.

Compute the price of the bonds based on semiannual analysis.

Reference no: EM132585208

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