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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 3 years. The face value of this bond is $1000. The bond pays semi-annual coupons at a rate of 8%
1. Calculate the price of this bond, assuming the yield to maturity is 8.5%
2. 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 7.8%. Calculate the price of the bond at the time of the sale.
3. What is your total dollar value and percent return over the holding period?

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