Thirteen years ago a firm issued 1000 par value bonds with


Thirteen years ago a firm issued $1,000 par value bonds with a 5% annual coupon rate and a term to maturity of 20 years. Market interest rates have decreased since then and similar bonds today would carry an annual coupon rate of 4%. What would these bonds sell for today if they made (a) annual coupon payments; and (b) semiannual coupon payments? A. 953.14;953.14;967.18 B. 1,060.73;1,060.73;1,060.02 C. 1,060.02;1,060.02;1,060.53 D. 1,153.47;1,153.47;1,267.83.

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Financial Management: Thirteen years ago a firm issued 1000 par value bonds with
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