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Consider a bond paying a coupon rate of 10.50% per year semiannually when the market interest rate is only 4.2% per half-year. The bond has

Consider a bond paying a coupon rate of 10.50% per year semiannually when the market interest rate is only 4.2% per half-year. The bond has two years until maturity.

Find the bond's price today and four months from now after the next coupon is paid.

b.	What is the total rate of return on the bond?

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