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5. -/1 points HarMathAp 12 6.4.011. My Notes Ask Your Teacher Suppose that a 25-year government bond has a maturity value of
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Answer #1

MARKET PRICE

=(1000*9%/2)*((1-(1+(8%/2))^(-25*2))/(8%/2))+1000/(1+(8%/2))^(25*2)

=1107.41

as price is above face value, that means it will be a premium bond

the above is answer..

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