What is price today if the coupon rate on comparable bonds

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Reference no: EM132581946

The Company issued a 25-year bond five years ago with a face value of $1,000. The bond pays interest semiannually at a 10% annual rate. Show all

Question 1: What is the bond's price today if the coupon rate on comparable new issues is 12%?

Question 2: What is the price today if the coupon rate on comparable bonds declines to 8%?

Reference no: EM132581946

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