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Ex. 2. Consider a bond with a coupon rate of 10% and coupons paid annually. The par value is $1,000 and the bond has 5

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Ex. 2. Consider a bond with a coupon rate of 10% and coupons paid annually. The par value is $1,000 and the bond has 5 years to maturity. The annual yield to maturity is 11%. What is the value of the bond? Coupon rate N 1% PV PMT FV

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