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(b) Suppose today is the year of 2005, a company namely Alexis offers a 10-year bond with a coupon rate of 10% per annum. What

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(b) Suppose today is the year of 2005, a company namely Alexis offers a 10-year bond with a coupon rate of 10% per annum. What is the price of the bond if the yield on the bond is 8% per annum and the face value is $20,000? (10 marks)

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