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A 3 0 year, 4 % semiannual coupon bond has a YTM of 3 . 7 5 % . In one year, the YTM decreases

30

year,

4 %

semiannual coupon bond has a YTM of

3.75 % .

In one year, the YTM decreases to

3.50 % .

What will the price of the bond be in one year?

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