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Consider three bond with face value of $10,000 and the coupon rate of 5.5%. a -year coupon the 28. Suppose that the market interest rate

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Consider three bond with face value of $10,000 and the coupon rate of 5.5%. a -year coupon the 28. Suppose that the market interest rate is currently 5%. What is the bond worth today if you buy a newly issued three-year bond as described above? a. $10.000 b. $10,177 c. $9 $10,136 29. Suppose that one year has elapsed since you bought the above bond. You have just received the first coupon payment, and suddenly the market interest rises to 5.5% and is expected to stay at 5.5% for the foreseeable future. What is the bond worth? a. $10,000 b. $10,177 c. $9,653 d. $10,136

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