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13, (15 points) A 4-year 5.8% coupon bond is selling to yield 7%. The bond pays interest annually. One year later interest rates decrease from

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13, (15 points) A 4-year 5.8% coupon bond is selling to yield 7%. The bond pays interest annually. One year later interest rates decrease from 7% to 62%. a. What is the price of this bond one year later if the yield decreases to 6.2%? b. If the coupon payments are reinvested at 6.2%, what is the future value of the coupons on the bond's maturity date

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