Question: Sally Ruth, Inc. has outstanding $1,000 par value bonds with an annual coupon interest rate of 8 percent. The bonds will mature in 20 years

Sally Ruth, Inc. has outstanding $1,000 par value bonds with an annual coupon interest rate of 8 percent. The bonds will mature in 20 years and interest is paid semi-annually. Compute the current price of the bonds if the yield to maturity is:

(a) 5%,

(b) 8%,

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