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A 10,000 bond with 8% coupon rate compounded semiannually is being sold to Andrew three years and four months before the bond matures. The purchase

A 10,000 bond with 8% coupon rate compounded semiannually is being sold to Andrew three years and four months before the bond matures. The purchase will yield 6% compounded semiannually to the buyer.

Calculate:

a)the theoretical price of the given bond

b)the quoted price of the given bond

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