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2. (2pts) The price of a 1000 10-year bond with semiannual coupons is 900, which is bought to yield a nominal rate of 10% convertible

2. (2pts) The price of a 1000 10-year bond with semiannual coupons is 900, which is bought to yield a nominal rate of 10% convertible semiannually. If the redemption value is 1065.33, find the coupon rate and modified coupon rate per coupon period. (Answer: 4%, 3.7547%)

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