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Consider three N - year bonds. The bonds all have the same par value and are all redeemable at par. Each of the bonds pays
Consider three year bonds. The bonds all have the same par value and are all redeemable at par.
Each of the bonds pays semiannual coupons and is priced using the same yield rate.
Bond A pays coupons of and has a price of
Bond B pays coupons of and has a price of
Bond C pays coupons of
Determine the price of Bond C
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