Miller Corporation has a premium bond making semiannual payments

Subject:BusinessPrice:3.87 Bought7

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Miller Corporation has a premium bond making semiannual payments. The bond pays a 9 percent coupon, 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 7 percent coupon, has a YTM of 9 percent, and also has 13 years to maturity. Assume interest rates remain unchanged.

Required:

(a)	Calculate the price of Miller Corporation bond. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16))

 

Year		Bond price
	In 1 year	$
	In 3 years	$
	In 8 years	$
	In 12 years	$
	In 13 years	$

(b)	Calculate the price of Modigliani Company bond. (Do not include the dollar signs ($). Round your answers to 2 decimal places. (e.g., 32.16))

 

Year		Bond price
	In 1 year	$
	In 3 years	$
	In 8 years	$
	In 12 years	$
	In 13 years	$