Question: ?(Bond relationship?) ?Mason, Inc. has two bond issues? outstanding, called Series A and Series? B, both paying the same annual interest of ?$8585. Series A

?(Bond relationship?) ?Mason, Inc. has two bond issues? outstanding, called Series A and Series? B, both paying the same annual interest of ?$8585. Series A has a maturity of 12 ?years, whereas Series B has a maturity of 11 year. a. What would be the value of each of these bonds when the going interest rate is? (1) 55 ?percent, (2) 99 ?percent, and? (3) 12 ?percent? Assume that there is only one more interest payment to be made on the Series B bonds. b. Why does the? longer-term ?(12?-year) bond fluctuate more when interest rates change than does the? shorter-term ?(11?-year) ?bond?

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