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6) A $100,000 4-year bond pays a coupon of $4,000 every six months. Comparable rate bonds yield 7%. What is the market price of said

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6) A $100,000 4-year bond pays a coupon of $4,000 every six months. Comparable rate bonds yield 7%. What is the market price of said bond? 7) Following the example in question 6, 1.5 years has passed, and the risk free rate has increased by 50bps. At the same time the issuer has been downgraded by rating agencies, and as a result its risk premium has increased by 250 bps. What is the new price

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