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An investor buys a bond with a face value of $6,000, maturing at par in 9 years, coupon rate of 6%, for a price to
An investor buys a bond with a face value of $6,000, maturing at par in 9 years, coupon rate of 6%, for a price to yield 5%.
a) What is the price of the bond?
b) After 6 years, the investor sells the bond to another investor who wants to receive a yield of 3%. At what price does he sell the bond?
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