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(Solved): A $1,000 par value bond's annual coupon rate is 4 percent and it pays coupon twice a year. The yield ...



A $1,000 par value bond's annual coupon rate is 4 percent and it pays coupon twice a year. The yield to maturity is 6 percent p.a. and it has 8 years to maturity. If the yield to maturity remains unchanged, how much is the price 3 years from now? Question 3 options:

a. 937.70

b. 971.71

c. 945.83

d. 914.70

e. 887.04



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