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Posted on Sep 20, 2024

A 1 0 - year bond has a coupon rate of 7 % and pays coupons semi - annually. If the required return is 6

10 -

year bond has a coupon rate of

7 %

and pays coupons semi

-

annually. If the required

return is

6.84 %,

how much should you be willing to pay for the bond today?

Answer:

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