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1. Assume the current Treasury yield curve shows that the spot rates for six months, one year, and 1% years are 196, 1.1%, and 1.3%,

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1. Assume the current Treasury yield curve shows that the spot rates for six months, one year, and 1% years are 196, 1.1%, and 1.3%, all quoted as semiannually com- pounded APRs. What is the price of a $1000 par, 4% coupon bond maturing in 1% years (the next coupon is exactly six months from now)? 12. Suppose a 10-year, $1000 bond with an 8% coupon rate and semiannual coupons is trading for $1034.74 a. What is the bond's yield to maturity (expressed as an APR with semiannual compounding)? b. If the bond's yield to maturity changes to 9% APR, what will the bond's price be

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