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A ten - year 9 % $ 1 , 0 0 0 par value bond is currently trading for $ 1 , 0 2 0
A tenyear $ par value bond is currently trading for $ You believe you can reinvest the semiannual coupon payments at a semiannual rate through maturity. However, you plan to sell the bond after two years. You believe that in two years, comparable year maturity bonds will be priced to yield annually.
How much do you expect the bond will sell for in two years?
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