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Consider a bond (with par value = $1,000) paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half-year. The bond has 3 years until maturity. a. Find the bond's price today and 6 months from now after the next coupon is paid. (Round your answers to 2 decimal places. Omit the "$" sign in your response.)
Current price ............................$
Price after six months........................................ $
b. What is the total (6-month) rate of return on the bond? (Omit the "%" sign in your response.)
Rate of return ........................%
Complete the template SOA for your client, using the data in the case study, the fact finder and risk profile. You do not have to provide retirement planning calculations and recommendations.
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