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Posted on Jul 15, 2024

A bank offers a two-year bond with par value $1,000 with 8% coupon rates, semi-annually. The yield rate of this bond is 4% p.a. compounded

A bank offers a two-year bond with par value $1,000 with 8% coupon rates, semi-annually. The yield rate of this bond is 4% p.a. compounded semi-annually.

What is the price of the two-year bond?

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