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a) Consider a one year 5% coupon bond with a principal of $1000. The current market yield is 3%. What price should the bond sell

a) Consider a one year 5% coupon bond with a principal of $1000. The current market yield is 3%. What price should the bond sell for? b) What would be the Yield to Maturity (IRR) if the same bond sold for $950?

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