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A. What is the price of a zero-coupon bond with a par value of $10000 and a 10 year maturity, when investors expect a return

  1. A. What is the price of a zero-coupon bond with a par value of $10000 and a 10 year maturity, when investors expect a return of 6.5%? B. What would the price be if the economic outlook appears weaker and investors are now willing to accept a rate of return of 3.5%?

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