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A $1,000 par value bond with 3 years to maturity and a 5% coupon has a yield to maturity of 6%. Interest is paid semi-annually.

A $1,000 par value bond with 3 years to maturity and a 5% coupon has a yield to maturity of 6%. Interest is paid semi-annually. Calculate the following:

(a) Price of the bond

(b) Calculate the Macaula 2 answers

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