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4. Consider a bond paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half year. The

4. Consider a bond paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half year. The bond has three years until maturity.

Find the bonds price today and 6 months from now after the next coupon is paid?

What is the 6-month holding-period return on this bond?

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