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Assume that you own a 10-year, $10,000 US Treasury bond with a coupon rate of 3%. There are two years left to maturity, and you
Assume that you own a 10-year, $10,000 US Treasury bond with a coupon rate of 3%. There are two years left to maturity, and you are planning to sell the bond in the secondary market. If the interest rate is 5%, how much can you expect to get for the bond? Please show your work.
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