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(a) If a coupon bond has a face value of $5000, a yearly coupon payment of $100, and a two year maturity, what is the

(a) If a coupon bond has a face value of $5000, a yearly coupon payment of $100, and a two year maturity, what is the current price, given i=3%? (b) What if i=4%?

Does the previous problem show the expected relationship between the interest rate and the price? Explain.

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