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Consider a bond paying a coupon rate of 9 . 5 % per year quarterly when the market interest rate is 5 . 2 5

Consider a bond paying a coupon rate of 9.5% per year quarterly when the market interest rate
is 5.25% per half-year. The bond has four years until maturity.
a. Find the bonds price today and nine months from now.
b. What is the total rate of return on the bond?

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