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What is the price of each of these bonds

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Question - Mrs. Alejandra Pérez, investment advisor for the house of ACCIVAL securities, is analyzing two bonds that it wants to recommend to its clients. The two bonds have a face value of $ 10,000.00 and a maturity of 15 years; the interest rate for this type of instrument is 7.5% per annum, compounded semi-annually. Bond A will not make payments during the first three years, the next five years will have a semester coupon of $ 400.00, and in the remaining years the coupon will be $ 420.00 every six months. For its part, bond B does not make coupon payments during the entire period. What is the price of each of these bonds? Take as the purchase date 07/01/2020.

Reference no: EM133013086

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