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1. a) What is the price of a 20-year bond with a 5% coupon (face value 100) and 6% yield? b) What is the price

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1. a) What is the price of a 20-year bond with a 5% coupon (face value 100) and 6% yield? b) What is the price if compounding is semi-annual? c) What about monthly? 2. What is the price of the bond in #1 if the coupon is zero? What does the pricing formula reduce to in this case

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