What is the total rate of return on the bond

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Reference no: EM132944054

Question - Consider a bond (with par value = $1,000) paying a coupon rate of 6% per year semiannually when the market interest rate is only 4% per half-year. The bond has three years until maturity.

Required -

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: EM132944054

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