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Consider a bond that makes nsemiannual coupon payments with semiannual coupon rate c. The time before the next coupon payment is t which is less
Consider a bond that makes nsemiannual coupon payments with semiannual coupon rate c. The time before the next coupon payment is t which is less than half a year. The semiannual YTM of the bond is y which is equal to c.
Find the price of the bond in terms of its par value. Is the bond at par, at premium,or at discount? Show all your steps for the full credit.
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