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A US Treasury bond with 10 years to maturity and 5% coupon just traded at a price of 105. You notice another 10-year US Treasury
A US Treasury bond with 10 years to maturity and 5% coupon just traded at a price of 105. You notice another 10-year US Treasury bond offers a coupon of 10% but has not traded for a few days. Based on this information what is the likely fair market value of second 10-year bond? (Hint: dont forget US Treasury bonds pay interest semi-annually.)
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