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An investor has two bonds in his portfolio that have a face value of $1,000 and...

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Accounting

An investor has two bonds in his portfolio that have a facevalue of $1,000 and pay a 7% annual coupon. Bond L matures in 17years, while Bond S matures in 1 year.

Assume that only one more interest payment is to be made on BondS at its maturity and that 17 more payments are to be made on BondL.

  1. What will the value of the Bond L be if the going interest rateis 5%? Round your answer to the nearest cent.
    $  

    What will the value of the Bond S be if the going interest rate is5%? Round your answer to the nearest cent.
    $  

    What will the value of the Bond L be if the going interest rate is10%? Round your answer to the nearest cent.
    $  

    What will the value of the Bond S be if the going interest rate is10%? Round your answer to the nearest cent.
    $  

    What will the value of the Bond L be if the going interest rate is11%? Round your answer to the nearest cent.
    $  

    What will the value of the Bond S be if the going interest rate is11%? Round your answer to the nearest cent.

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