Using semiannual​ compounding, find the prices of the following​ bonds: a. A 9.4​%, ​15-year bond priced to yield 7.6​%.

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answerhappygod
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Using semiannual​ compounding, find the prices of the following​ bonds: a. A 9.4​%, ​15-year bond priced to yield 7.6​%.

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Using semiannual​ compounding, find the prices of thefollowing​ bonds:
a. A 9.4​%, ​15-year bond priced to yield 7.6​%.
b. A 7.6​%,10-year bond priced to yield 9.4​%.
c. A 12.5​%, 20-year bond priced at 10.7​%.
Repeat the problem using annual compounding. Then comment on thedifferences you found in the prices of the bonds.
A1. Using semiannual​ compounding, the price of the bond is$___.
B1. Using semiannual​ compounding, the price of thebond is $___.
C1. Using semiannual​ compounding, the price of thebond is $___.
A2. Using annual​ compounding, the price of the bondis $___.
B2. Using annual​ compounding, the price of the bondis $___.
C2. Using annual​ compounding, the price of the bondis $___.
Comment on the differences you found in the prices of thebonds.
Bonds selling at a premium sell at lower prices when theinterest is compounded semiannually as opposed toannually.​ Accordingly, bonds selling at a discount sell atlower prices when the interest is compounded annually as opposed tosemiannually.
Bonds selling at a premium sell at higher prices when theinterest is compounded semiannually as opposed toannually.​ Accordingly, bonds selling at a discount sell athigher prices when the interest is compounded annually as opposedto semiannually.
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