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a) (5 points) Calculate the price of a $1000 face value five year coupon bond when the yield to maturity is 2%, and the coupon
a) (5 points) Calculate the price of a $1000 face value five year coupon bond when the yield to maturity is 2%, and the coupon rate is 5%.
b) (5 points) Now suppose that the yield to maturity rises to 4%. Calculate the new price of this coupon bond.
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