Explain the relationship between the number of years

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The Nickelodeon Manufacturing Co. has a series of $1000 per value bonds outstanding. Each bond pays interest semi-annually and carries an annual coupon rate of 7.6%. some bonds are due in three years while other are due in 12 years. If the required rate of return on bonds is 10% what is the current price of?

a.) The bonds with 3 years to maturity?

b.) The bonds with 12 years to maturity?

c.) Explain the relationship between the number of years until a bond matures and its price.

Reference no: EM132185180

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