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What is the present price of each bond

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Problem 1: A company has two bonds outstanding. The first mature after five years and has a coupon rate of 8.25 percent. The second matures after 10 years and has a coupon rate of 8.25 percent. Interest rates are currently 10 percent. What is the present price of each $1,000 bond? Why are these prices different?

Reference no: EM132906653

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