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Bell Canada issues a 20 year bond with 3% coupon rate (paid semi-annually.) Other similar Bell Canada bonds a yield of 3.6%. (These bonds are
Bell Canada issues a 20 year bond with 3% coupon rate (paid semi-annually.) Other similar Bell Canada bonds a yield of 3.6%. (These bonds are quoted on a bond equivalent yield basis, i.e. compounded semi-annually.) The bond has a face value of $1000. What is the fair market value of the bond?
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