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Suppose for $1,000 you could buy an 11%, 10-year, annual payment bond or a 11%,...

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Finance

Suppose for $1,000 you could buy an 11%, 10-year, annual payment bond or a 11%, 10-year, semiannual payment bond. If $1,000 is the proper price for the semiannual bond, what is the equilibrium price for the annual payment bond? please explain the equilibrium price and what is the proper price?

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