SSS bonds have a 12-years maturity, a $1,000 par value, and a 6.75% coupon paid quarterly, and

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SSS bonds have a 12-years maturity, a $1,000 par value, and a 6.75% coupon paid quarterly, and those bonds sell at their par value.

KKK bonds have the same risk, maturity, and par value as SSS bonds, but the KKK bonds pay a 5.75% semi-annual coupon.

a/ What is the current price of the KKK bonds?

b/ What is the price of the KKK bonds 5 years from now?

Related Book For answer-question

Financial Markets and Institutions

ISBN: 978-0077861667

6th edition

Authors: Anthony Saunders, Marcia Cornett

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Posted Date: Dec 29, 2022 01:03 AM

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SSS bonds have a 12-years maturity, a $1,000 par value, and a 6.75% coupon paid quarterly, and

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Financial Markets and Institutions

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