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Consider a bond with face value $ 1 0 0 0 paying a coupon rate of 2 0 % per year quarterly when the market
Consider a bond with face value $ paying a coupon rate of per year quarterly when the market interest rate is only per year. The bond has three years until maturity. Please write the mathematical formula by which you will get a solution of Bond Price but you can solve it by using a financial calculator or Excel Calculator.
a a Find the bond's price today and six months from now after the next coupon is paid.
b What is the total rate of return on the bond at six months from now after the next two coupons are paid? Suppose the coupons is not reinvested
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