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A Government of Canada bond has a 6.1 percent coupon which pays semi-annually and matures in 11 years. If interest rates have declined to 5.4

A Government of Canada bond has a 6.1 percent coupon which pays semi-annually and matures in 11 years. If interest rates have declined to 5.4 percent for similar bonds, what should be the price for this bond? (Assume $1000 par value)

a.

$1000

b.

$1057.49

c.

$1558.51

d.

$1056.94

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