Computing bond price on a non-coupon date

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Computing Bond Price on a Non-Coupon Date

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

a. Find the bond's price today. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Current price $

b. Find the bond's price four months from now. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

Price after four months $

Reference no: EM131523760

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