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Compute the price of a 3.8% coupon bond with 18 years left to maturity and a market interest rate of 7%. Compute the price again
Compute the price of a 3.8% coupon bond with 18 years left to maturity and a market interest rate of 7%. Compute the price again if interest payments are paid semi-annually (solve using semi-annual compounding). Par value is $1000.
Compute the annual compound answer-
Compute the Semi-annual answer-
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