What is the price of the bond which pays annual interest


A 6-year bond which pays 8 percent interest semiannually sells at par ($1,000). Another 6-year bond of equal risk pays 8% interest annually. Both bonds are non-callable and have a face value of $1,000. What is the price of the bond which pays annual interest?

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Finance Basics: What is the price of the bond which pays annual interest
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