What should each bond be selling for

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Reference no: EM131188134

Assume bond 1 and bond 2 are both pure discount bonds and mature in exactly one year and two years, respectively. If the bonds have $1,000 par values and investors desire 5% return during the next year and a 7.5% annualized return during the next two years, what should each bond be selling for?

Reference no: EM131188134

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