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Consider a bond that matures in 3 years. The face value of this bond is $ 1 0 0 0 . The bond pays semi
Consider a bond that matures in years. The face value of this bond is $ The bond pays semiannual coupons at a rate of
Calculate the price of this bond, assuming the yield to maturity is
Suppose you hold this bond for two years and then sell it just after receiving a coupon payment. At the time of the sale, the yield to maturity has fallen to Calculate the price of the bond at the time of the sale.
What is your total dollar value and percent return over the holding period?
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