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5 6 1. Compute the price of a 3.8% coupon bond with 18 years left to maturity and a market interest rate of 7%.

5 6 1. Compute the price of a 3.8% coupon bond with 18 years left to maturity and a market interest rate of 7%. Compute the price again if interest payments are paid semi-annually (solve using semi-annual compounding). Par value is $1000.

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