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2, An n-year 1,000$ par value bond with 3.25% annual coupons is pur- chased at a price to yield an annual effective interest rate of

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2, An n-year 1,000$ par value bond with 3.25% annual coupons is pur- chased at a price to yield an annual effective interest rate of i. You are given: (i) If the annual coupon rate had been 4.50% instead of 3.25%, the price of the bond would have increased by 1008. (ii) At the time of the purchase, the present value of all the coupon payments is equal to the present value of the bond's redemption value of 1,0008. Calculate

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