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A zero-coupon bond has a face value of $1000, and a maturity of 3 years. Calculate the bond price when the yield is (i) 10%

A zero-coupon bond has a face value of $1000, and a maturity of 3 years. Calculate the bond price when the yield is (i) 10% and (ii) 12% with semi-annual compounding. How the change in bond yield influences the bond price?

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