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If both bonds had a required return of 8 what would the

Consider the two bonds described below:

a. If both bonds had a required return of 8%, what would the bonds' prices be?

b. Describe what it means if a bond sells at a discount, a premium, and at its face amount (par value). Are these two bonds selling at a discount, premium, or par?

c. If the required return on the two bonds rose to 10%, what would the bonds' pricesbe?

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Finance Basics: If both bonds had a required return of 8 what would the

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Finance Basics: If both bonds had a required return of 8 what would the

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