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Q 2 ) Consider a 5 % annual coupon bond with $ 1 , 0 0 0 face value and 3 years to maturity. What

2)

Consider a

5 %

annual coupon bond with $

1, 000

face value and

3

years to maturity. What is the current market price, if yield to maturity is

8 % ?

(

Ans

.

922.70)

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