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2. Suppose that you buy a 10 percent coupon, 3-year bond today with a par value of $1,000. The bond pays coupons semiannually. (a) Sketch

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2. Suppose that you buy a 10 percent coupon, 3-year bond today with a par value of $1,000. The bond pays coupons semiannually. (a) Sketch the future cash flows of this bond. (b) If the yield to maturity is 5 percent, what is the current bond price? (c) In light of your answer to (b), is this a discount bond or a premium bond? 2 A

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