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Consider a bond paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half- year. The
Consider a bond paying a coupon rate of 10% per year semiannually when the market interest rate is only 4% per half- year. The bond has three years until maturity. Required: a. Find the bond's price today and six months from now after the next coupon is paid. (Do not round intermediate calculations. Round your answers to 2 decimal places.) Current price Price after six months 6 ces b. What is the total rate of return on the bond? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Total rate of return % per six months
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