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Bond Price Movements Miller Corporation has a pr...

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Bond Price Movements Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of 7 percent, has a YTM of 5 percent, and has 11 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond pays a coupon of 5 percent, has a YTM of 7 percent, and also has 11 years to maturity. What is the price of each bond today? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Price of Miller Corporation bond $ Price of Modigliani Company bond $ If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 2 years? In 6 years? In 10 years? In 11 years? (Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16)) Price of bond Miller Corporation Bond Modigliani Company Bond 1 year $ $ 2 years $ $ 6 years $ $ 10 years $ $ 11 years $ $

 

Paper#13676 | Written in 18-Jul-2015

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