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3. A $2,000 8% 20-year bond pays semi-annual interest. Use 9% as yield to maturity (required return) of the bond if the last digit
3. A $2,000 8% 20-year bond pays semi-annual interest. Use 9% as yield to maturity (required return) of the bond if the last digit of your ID is between 0 and 4 and use 10% as yield to maturity (required return) of the bond if the last digit of your ID is between 5 and 9. a) Find the value of the bond today. b) If the market price of the bond is exactly equal the value of the bond today that you found in part (a) above, what kind of bond is it?
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