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Find the bond price today and six months

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Reference no: EM132753971

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 and six months from now after the next coupon is paid.

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

Reference no: EM132753971

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