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1. A person holds a two period bond which pays coupon C at the end of each period. Expected interest rate for each of these
1. A person holds a two period bond which pays coupon C at the end of each period. Expected interest rate for each of these periods is i. Find price of bond today
2. interest changes to I' in second period. Evaluate rates of return when the person sells the bond after period 1 in the following two cases- change anticipated and change not unanticipated
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