A bonds have the same risk maturity nominal interest


Zumwalt Corporation's Class S bonds have a 12-year maturity, and a 8.75% coupon paid semiannually, and those bonds sell at their par value. Zumwalt's Class A bonds have the same risk, maturity, nominal interest rate,and par value, but these bonds pay interest annually. Neither bond is callable. At what price should the annual payment bond sell?

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Finance Basics: A bonds have the same risk maturity nominal interest
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