Consider a government bond issued at a par value of R1 million. Interest is paid semi-annually and the yield to maturity is 12% per annum. The bond matures in six years’ time and has a coupon rate of 14% per annum. The value of the bond is?
1. R1 082 228
2. R1 083 838
3. R1 084 368
4. R1 000 000

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