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(b) A five-year bond has a yield to maturity of 1%, a face value of $1,000, and pays annual coupons at a rate of 2%.

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(b) A five-year bond has a yield to maturity of 1%, a face value of $1,000, and pays annual coupons at a rate of 2%. Compute its price today: its price the insta t before the first coupon is payed; and its price the instant after the first coupon is payed. Assume that its yield to maturity stays at 1%. Price today: Price pr e-coupon: Price post-coupon

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