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1. Consider the following three bonds: Bond A: 10% coupon rate with semi-annual payments, 2 years remaining to maturity, and notional 100. Bond B: 6%

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1. Consider the following three bonds: Bond A: 10% coupon rate with semi-annual payments, 2 years remaining to maturity, and notional 100. Bond B: 6% coupon rate with semi-annual payments, 2 years remaining to maturity, and notional 100. Bond C: 2% coupon rate with semi-annual payments, 2 years remaining to maturity, and notional 100. Suppose that the respective yields are 7.70%, 8.10%, and 8% semi-annually compounded. (a) Compute the prices of the bonds A, B, and C. (15 marks)

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