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1.) A bond is selling for a dollar price of 97.635. If this bond has an original maturity of 10 years, has been in the

1.) A bond is selling for a dollar price of 97.635. If this bond has an original maturity of 10 years, has been in the market for 18 months, and has a 4.50% coupon, what is the current required return? 2.) If the bond in the previous question were to remain in the market for 18 more months and rates on similarl securities fell by 200 basis points, what would be the bond's new price?

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