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What is the price of bond today

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Bond X is a premium bond making semiannual payments. The bond pays 9 percent coupon, has a yield to maturity (YTM) of 6.5 percent and has 14 years to maturity. Bond Y is a discount bond making semiannual payments. This bond pays a 10 percent coupon, has a YTM of 11.5 percent and also has 16 years to maturity. The par value of the bond is $1,000,

a) What is the price of each bond today?

Reference no: EM132816134

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