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a) You hold a two-period bond that pays a coupon c at the end of each period. The interest rate is expected to be i

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a) You hold a two-period bond that pays a coupon c at the end of each period. The interest rate is expected to be i for each of these periods. What is the price of the bond today? b) The interest rate changes to iO in the second period. Evaluate the rates of return when you sell the bond after one period in the case of the change being i) anticipated ii) unanticipated

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