What is the price of the bond that pays annual coupons

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Problem: A bond with 6 years to maturity and sells at par pays coupons semi-annually at a rate of 8.6 percent. Another bond of equal risk and maturity pays coupons annually at a rate of 8.6 percent. Both bonds have face values of $1,000.

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Question: What is the price of the bond that pays annual coupons?

Reference no: EM132509150

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