Homework Answers
For Bond A
M = $1000, n = 4, C = 5% * $1000 = $50, i = 8%
P = $165.61 + $753.03
P = $900.64
For Bond B
M = $1000, n = 30, C = 5% * $1000 = $50, i = 8%
P = $562.89 + $99.38
P = $662.27
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