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(1) Consider a newly issued 30-year government bond that pays coupons annually. The bond has a coupon rate of 10%, a face value of $100

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(1) Consider a newly issued 30-year government bond that pays coupons annually. The bond has a coupon rate of 10%, a face value of $100 and a yield-to-maturity of 5% per year. Coupons are paid at the end of each year. What is the fair value of this 30-year government bond today? $98.62. $155.32. $172.74 $176.86. C)

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