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A treasury bond has a coupon rate of 9%, a face value of 1,000 and matures 10 years from today. For a treasury bond the

A treasury bond has a coupon rate of 9%, a face value of 1,000 and matures 10 years from today. For a treasury bond the interest is paid semi-annual installments. The current risk less interest rate is 12% compounded semi annually.

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