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1. Consider a bond with face value F 100 dollars maturing in five years, T = 5, with coupon of C = 5 dollars paid

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1. Consider a bond with face value F 100 dollars maturing in five years, T = 5, with coupon of C = 5 dollars paid annually, the last one at maturity. Given the continuous compounding rate, 6%. a. Find the price of this coupon bond. b. How long will it take for the price of the coupon bond to reach $98

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