4a) Pacific Homecare has two bond issues outstanding. Both bonds pay $100 in annual interest plus $1,000 at maturity. Bond S (S for short term) has a maturity of 5 years, and Bond L (L for long term) matures in 30 years. What is the value of Bond L when the reuired interest rate is 10 percent
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an investor has two bonds in his portfolio that have a face value of 1,000 and pay a 10% annual coupon Bond L matures in 11 years, while Bond S matures in 1 year what will the value of Bond L be if the going interest rate is 5%, 6%,and 11%
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