Question: 4 . a . Pacific Homecare has two bond issues outstanding. Both bonds pay $ 1 0 0 in annual interest plus $ 1 ,
a Pacific Homecare has two bond issues outstanding. Both bonds pay $ in annual interest plus $ at maturity. Bond S S for shortterm has a maturity of years, and Bond L L for longterm matures in years. What is the value of Bond L when the required interest rate is percent?
Answer to the nearest cent.
Note: A bond's price will always equal this answer when the coupon rate
equals the required interest rate.
b Pacific Homecare has two bond issues outstanding. Both bonds pay $ in annual interest plus $ at maturity. Bond S S for shortterm has a maturity of years, and Bond L L for longterm matures in years. What is the value of Bond S when the required interest rate is percent?
Answer to the nearest cent.
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