Illustrate what is the total rate of return on the

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Reference no: EM13101100

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

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

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

Reference no: EM13101100

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