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All bonds are semi-annual. All yield measures are stated as annual percentage rates. 1. Suppose you buy a 2 year 5% bond that has a

All bonds are semi-annual. All yield measures are stated as annual percentage rates.

1. Suppose you buy a 2 year 5% bond that has a yield to maturity (YTM) of 6%. What is the price of the bond?

2. Suppose you buy a 3 year 6% bond that has a YTM of 5%. What is the price of the bond?

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