What is the current bond price of abc

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Problem 1: ABC Corporation issued 30 year semi-annual 12% coupon bond with face value $1,000. The current yield to maturity is 8%. What is the current bond price of ABC?

Problem 2: Another company, J Bieber Corporation issue a similar bond of semi-annual 12% coupon with 8% yield to maturity, but a longer time to maturity. Would the current bond price of J Bieber be higher or lower than ABC? Why?

Reference no: EM132841289

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