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3 . One year ago, XYZ Co . issued 6 - year bonds at par. The bonds have a coupon rate of 5 . 4

3. One year ago, XYZ Co. issued 6-year bonds at par. The bonds have a coupon rate of 5.41 percent, paid semiannually, and a face value of $1,000. Today, the market yield on these bonds is 3.36 percent. What is the percentage change in the bond price over the past year?
4. Suppose ABC Co. issues $28 million of 9-year zero coupon bonds today. If investors require a return of 4.24 percent compounded semiannually and all the bonds remain outstanding until they mature, how much (in $ millions) will ABC have to pay to redeem the bonds.

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