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Consider a bond with a par value of R 1 0 0 0 paying a coupon rate of 1 0 % per year semi -

Consider a bond with a par value of R

1 000

paying a coupon rate of

10 %

per year semi

-

annually when the market interest rate is only

4 %

per half

-

year. The bond has three years until maturity. Determine the bond's price today and six months from now after the next coupon is paid. What is the total rate of return on the bond?

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