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    Burns Fire and Casualty Company

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    Burns Fire and Casualty Company has $1,000 par value bonds outstanding at 11 percent interest. The bonds will mature in 20 years. Compute the current price of the bonds if the present yield to maturity is:

    a. 6 percent.
    b. 8 percent.
    c. 13 percent.

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    Solution Preview

    Burns Fire and Casualty Company has $1,000 par value bonds outstanding at 11 percent interest. The bonds will mature in 20 years. Compute the current price of the bonds if the present yield to maturity is:

    a. 6 percent.
    b. 8 ...

    Solution Summary

    This solution is comprised of a detailed explanation to compute the current price of the bonds.

    $2.19

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