Explain what is the price of the bond which pays annual

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Bond Valuation

Bond value

A 6-year bond which pays 8 percent interest semi-annually sells at par ($1,000). Another 6-year bond of equal risk pays 8 percent interest annually. Both bonds are non-callable and have a face value of $1,000. What is the price of the bond which pays annual interest?

Reference no: EM1314519

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