1,000 ANSWER -1,135.78 If interest is paid annually: Value (Vb) = The value of the bond is $1,134.65: 8 4 60 1,000 ANSWER -1,134.65 7-7. a. Series A: Value (Vb) = Value (Vb) = Value (Vb) = 12 = 4 7 10 55 1,000 ANSWER -1,140.78 -880.86 -693.38 Series B Value (Vb) = + Value (Vb) = + Value (Vb) = + 1 = 4 7 10 55 1,000 ANSWER -1,014.42 -985.98 -959.09 b. Longer-term bondholders are locked into a particular…
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