Question: Please show your work. It is claiming the answer is less than 1050.00 Thanks! Assets, Incorporated, plans to issue $6 million of bonds with a

Please show your work. It is claiming the answer is less than 1050.00

Thanks!

Please show your work. It is claiming the answer is less than

Assets, Incorporated, plans to issue $6 million of bonds with a coupon rate of 6.9 percent, a par value of $1,000, semiannual coupons, and 25 years to maturity. The current market interest rate on these bonds is 6.4 percent. In one year, the interest rate on the bonds will be either 9 percent or 5 percent with equal probability. Assume investors are risk-neutral. a. If the bonds are noncallable, what is the price of the bonds today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

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