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42 A bond pays a coupon of 35 every six month and 3100 will be repaid at maturity. There are three years to maturity and

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42 A bond pays a coupon of 35 every six month and 3100 will be repaid at maturity. There are three years to maturity and the next coupon is due in six months. The redemption yield on similar bonds is 12% per annum. Estimate the fair price of the bond. 6

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