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What would be the value of the bonds on December

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Reference no: EM133050920

Question - Mega Bonds Limited is a major player in the bond market. They are considering the purchase of a 30-year bond series that was issued July 1, 2011. The bonds have a par value of $1,000 and pay coupons semi-annually at a rate of 6%.

What would be the value of the bonds on December 31, 2022, if the interest rates had risen to 14%? Based on the price, how would these bonds be classified?

Reference no: EM133050920

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