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Assume that it is May 15, 2020, and the Government of Canada has just issued bonds with a May 2022 maturity, $200 par value, and
Assume that it is May 15, 2020, and the Government of Canada has just issued bonds with a May 2022 maturity, $200 par value, and a 7% (APR) coupon rate with semi-annual coupons. The first coupon payment will be paid on November 15, 2020. Calculate the price of the bond if alternative investments with similar risk pay 6% per year (APR) return.
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