At what price should the annual payment bond sell

Reference no: EM13282530

Zumwalt Corporation's Class S bonds have a 12-year maturity, and a 8.75% coupon paid semiannually, and those bonds sell at their par value. Zumwalt's Class A bonds have the same risk, maturity, nominal interest rate,and par value, but these bonds pay interest annually. Neither bond is callable. At what price should the annual payment bond sell?

Reference no: EM13282530

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