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Consider a bond with $1 million face value, 6.6% coupon rate with coupon payments every four months, and 20 years till maturity. The yield to

Consider a bond with $1 million face value, 6.6% coupon rate with coupon payments every four months, and 20 years till maturity. The yield to maturity of the bond is 7.2%. a. Calculate the maximum price you would be willing to pay for this bond today. b. Calculate the equilibrium price of this bond right after its 23rd coupon payment if its yield to maturity at the time is expected to be 6%.

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