Assume interest payments are on an annual basis

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For the bond problem, assume interest payments are on an annual basis. Kilgore Natural Gas has a $1,000 par value bond outstanding that pays 9 percent annual interest. The current yield to maturity on such bonds in the market is 12 percent. Compute the price of the bonds for these maturity dates: a. 30 years. b. 15 years. c. 1 year

Reference no: EM131318785

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