Intro The University of California has two bonds outstanding. Both issues have the same credit...
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Intro The University of California has two bonds outstanding. Both issues have the same credit rating, a face value of $1,000 and a coupon rate of 5 %. Coupons are paid twice a year. Bond A matures in 1 year, while bond B matures in 30 years. The market interest rate for similar bonds is 10%. Attempt 3/5 for 8 pts. Part 1 What is the price of bond A? No decimals Submit Attempt 1/5 for 10 pts. B Part 2 What is the price of bond B? No decimals Submit BAttempt 1/5 for 10 pts. Part 3 Now assume that yields increase to 13 %. What is the price of bond A? No decimals Submit Attempt 1/5 for 10 pts. B Part 4 What is now the price of bond B? No decimals Submit
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