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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 bond has

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 3 years until maturity.

a. Find the bonds price today and 6 months from now after the next coupon is paid.

b. What is the total (6 month) rate of return on the bond?

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