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Business, 01.11.2019 06:31 fgcherubin

Assume hawaiian electric has a $1,000 par value bond outstanding that pays 9% annual interest (also, referred to as the coupon rate). if the current yield (also, referred as the market rate) to maturity on this bond is 12%, what is the price of the bond today if the time to maturity is 30 years? does the price of the bond rise or fall if the time to maturity is 15 years? what is the exact price difference between the 30 year and 15 year bonds? explain the reason(s) for the change in price between the two maturities.

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Assume hawaiian electric has a $1,000 par value bond outstanding that pays 9% annual interest (also,...
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