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Compute the price of the bonds for these maturity dates

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Question - Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 10 percent annual interest. The current yield to maturity on such bonds in the market is 12 percent. Use Appendix B and Appendix D for an approximate answer but calculate your final answer using the formula and financial calculator methods.

Required - Compute the price of the bonds for these maturity dates: 40 years, 20 years and 5 years.

Reference no: EM133118843

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