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A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third year

A company issues a ten-year bond at par with a coupon rate of 6.5% paid semi-annually. The YTM at the beginning of the third year of the bond (8 years to maturity) is 9% . What is the new price of the bond?

a. $860

b. $1,203

c, $1,031

d. $1,000

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