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He investor is considering purchasing a new issue of 5 years bonds of $1000 par value and an annual fixed coupon rate of 12% while

He investor is considering purchasing a new issue of 5 years bonds of $1000 par value and an annual fixed coupon rate of 12% while coupon payments are made semiannually. The minimum semiannual yield That the investor would except is 6.75% . To find the fair value of a bond we should calculate a semi annual coupon payment

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