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A $2,000,000 bond was issued on September 1 2015 with a 6 year maturity. Coupon rate is 4.5% and the present YTM is 3.75% p.a.

A $2,000,000 bond was issued on September 1 2015 with a 6 year maturity. Coupon rate is 4.5% and the present YTM is 3.75% p.a. compounded half-yearly. Interest is paid semi annually. How much is the bond worth on 1 March 2018?

a. $2,025,179.52 b. $1,903,285.43 c. $2,048,774.02 d. $1,951,923.15 e. $1,879,511.40

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