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Find a fair price for the bond which pays 3,4% coupon and matures in 20 years. Market interest rates for similar bonds is 3,0%. a.

Find a fair price for the bond which pays 3,4% coupon and matures in 20 years. Market interest rates for similar bonds is 3,0%.

a. Bond pays coupon once in a year

b. Bond pays coupon twice in a year

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