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(25 pt) 2-) Calculate the fair present value of the bond which makes coupon payments semiannually and has a nominal value of $1000 and has
(25 pt) 2-) Calculate the fair present value of the bond which makes coupon payments semiannually and has a nominal value of $1000 and has a 12 years remaining to maturity and which has a required rate of retum of 10 percent. (30 pt) 3-) The current one year Treasury bill rate is 3.5 percent, and the expected one year rate 12 months from now is 3.8 percent. According to the unbiased expectations theory, what should (25 pt) 2-) Calculate the fair present value of the bond which makes coupon payments semiannually and has a nominal value of $1000 and has a 12 years remaining to maturity and which has a required rate of retum of 10 percent. (30 pt) 3-) The current one year Treasury bill rate is 3.5 percent, and the expected one year rate 12 months from now is 3.8 percent. According to the unbiased expectations theory, what should
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