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1. 1) A coupon bond with coupon rate 6% and coupon paid semiannually has a par value of $1,000, matures in 5 years, and is

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1. 1) A coupon bond with coupon rate 6% and coupon paid semiannually has a par value of $1,000, matures in 5 years, and is selling today at a $75 discount from par value. What is the price of the bond? What is the current yield on this bond? 2) You find bond A priced to yield 6%, and a similar-risk bond B priced to yield 6.5%. If you expect the interest rates to rise, what will happen to the prices of the two bonds (increase or fall)? In terms of price change, which bond's price is expected to increase or fall more, and which bond's price is expected to increase or fall less

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