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[answered] Miller Corporation has a premium bond making semiannual pay


Miller Corporation has a premium bond making semiannual payments. The bond pays a coupon of?9 percent, has a YTM of 7 percent, and has 13 years to maturity. The Modigliani Company has a discount bond making semiannual payments. This bond pays a coupon of 7 percent, has a YTM of 9 percent, and also has 13 years to maturity.


?

What is the price of each bond today??(Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))


?

? ?
??Price of Miller Corporation bond $???
??Price of Modigliani Company bond $???


?

If interest rates remain unchanged, what do you expect the price of these bonds to be 1 year from now? In 3 years? In 8 years? In 12 years? In 13 years??(Do not round intermediate calculations and round your final answers to 2 decimal places. (e.g., 32.16))


?

Price of bond Miller Corporation Bond Modigliani Company Bond
??1 year $??? $???
??3 years $??? $???
??8 years $??? $???
??12 years $??? $???
??13 years $??? $???



Rhiannon Corporation has bonds on the market with 20.5 years to maturity, a YTM of 8.10 percent, and a current price of $1,074. The bonds make semiannual payments.


What must the coupon rate be on these bonds??(Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))




 


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