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3 . Suppose that a bond has a face value of $ 1 , 0 0 0 and a YTM of 8 % per annum.

3 .

Suppose that a bond has a face value of $

1, 000

and a YTM of

8 %

per annum. If the bond pays monthly coupons with an annual coupon rate of

9.6 %,

what will be the current price of the bond? The bond will mature in

5

years.

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