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2. A coupon bond with a par value of $1,000 and a 10-year maturity pays semi-annual coupons of $22. a. Suppose the current interest rate

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2. A coupon bond with a par value of $1,000 and a 10-year maturity pays semi-annual coupons of $22. a. Suppose the current interest rate for this bond is 4% per year compounded semi-annually. What is the fair price of the bond? b. Is the bond selling above or below par value

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