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What is the market price of the bond

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Question - You are considering purchasing a 3-year corporate bond, with an annual coupon rate of 4% (coupons paid semi-annually) on a principal value of $100. The yield to maturity desired in the market is 4% (2% semi-annually). What is the market price of the bond? What would the price of the bond be if the market demanded a 5% (2.5% semi-annually) yield?

Reference no: EM132549742

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