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Longer term bonds may include a larger term premium. The risk characteristics of the company may have change between issues, resulting in a larger...
Longer term bonds may include a larger term premium. The risk characteristics of the company may have change between issues, resulting in a larger required return and coupon at issue. B. Based on the required returns of 8.5% and 9% for similar short term and long term bonds respectively, what are the values of the semiannual coupon bonds and notes held in Ms. Peabody"s portfolio?