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Consider a bond paying a coupon rate of 10% per year semianunually when the market interest rate is only 4% per half-year. The bond has 3 years until maturity.

a. Find the bond's price today and 6 months from now after the next coupon is paid

b. What is the total (6-month) rate of return on the bond?

Business Management, Management Studies

  • Category:- Business Management
  • Reference No.:- M998609

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