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A government bond with a face value of $1,000 was issued eight years ago and there are seven years remaining until maturity. The bond pays

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A government bond with a face value of $1,000 was issued eight years ago and there are seven years remaining until maturity. The bond pays semi-annual coupon payments of $45, the coupon rate is 9% pa paid twice yearly and rates in the marketplace are 8% pa compounded semi- annually. What is the value of the bond today? a. $1,058.26 b. $1,052.82 c. $1,033.66 d. $1,000.00 e. $817.78

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