2.The Mariposa Co. has two bonds outstanding. One was issued 25 years ago at a coupon rate...

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2.The Mariposa Co. has two bonds outstanding. One was issued 25 years ago at a coupon rate of 9%. The other was issued 5 years ago at a coupon rate of 9%. Both bonds were originally issued with terms of 30 years and face values of $1,000. The going interest rate is 12% today.

What are the prices of the two bonds at this time? Assume bond coupons are paid semiannually. Round PVFA and PVF values in intermediate calculations to four decimal places. Do not round other intermediate calculations. Round the answers to the nearest cent.

Old: $?

2.New: $?

Posted Date: May 18, 2024 04:04 PM

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2.The Mariposa Co. has two bonds outstanding. One was issued 25 years ago at a coupon rate...

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