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Blue Jam Pty Ltd has issued a 3-year bond with a face value of $1000 that pays a coupon of 4.90 per cent. Coupon payments
Blue Jam Pty Ltd has issued a 3-year bond with a face value of $1000 that pays a coupon of 4.90 per cent. Coupon payments are made semi-annually. Given the market rate of interest of 4.70 per cent, what is the market value of the bond? (2 Marks for correct time line, 2 Marks for correct formula, 12 Marks for correct workings, and 4 Marks for the correct answer to equal a total of 20 Marks)
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