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3. You are considering purchasing a 4% coupon bond that makes semiannual payments. The current yield to maturity of the bond is 2.936% and the

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3. You are considering purchasing a 4% coupon bond that makes semiannual payments. The current yield to maturity of the bond is 2.936% and the next payment is exactly 6 months from the day you will buy it. The par value of the bond is $1000 a. What is the current value of the bond based upon its YTM? (find the value of the bond using the techniques from finance 101) (5 points) b. The zero spot interest rates are provided below. Value the bond using the zero spot interest rates (show the original equation used when you set up the problem). ( 5 points)

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