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5. Estimate the current price of a bond with a 6% coupon, (interest paid semi-annually), that matures in five years with a current YTM of

5. Estimate the current price of a bond with a 6% coupon, (interest paid semi-annually), that matures in five years with a current YTM of 8%. Assume the par value is $1,000.

a. $887.42

b. $918.89

c. $902.40

d. $833.37

e. None of the above

Please show your work using a formula. Thank you

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