Question: Applied Software has a $1,000 par value bond outstanding that pays 12 percent interest with annual payments. The current yield to maturity on such bonds

Applied Software has a $1,000 par value bond outstanding that pays 12 percent interest with annual payments. The current yield to maturity on such bonds in the market is 10 percent. Compute the price of the bonds for these maturity dates: (Use a Financial calculator to arrive at the answers. Do not roun Intermediate calculations. Round the final answers to 2 decimal places.) ded a. 40 years b. 25 years c. 3 years Price of the bond $ 2,744.88 $ 11,084.76 $ 1,075.93

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