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7. Suppose a 4-year 6% semi-annual coupon bond is traded to yield 8% currently (par is $100). (A) Compute the price of the bond currently;

7. Suppose a 4-year 6% semi-annual coupon bond is traded to yield 8% currently (par is $100). (A) Compute the price of the bond currently; (2 points) (B) Compute the percentage of returns from reinvestment income in total dollar returns. (10 points)

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