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Question 1: Consider the bond with the following features that pays annual coupons: Face value : 100 Coupon rate : 0.08 Coupon frequency : 1

Question 1:

Consider the bond with the following features that pays annual coupons:

Face value : 100
Coupon rate : 0.08
Coupon frequency: 1
Time to maturity: 20

Suppose that the interest rate (YTM) equals 7%.

a) Write a function that calculates the bond's price. What is the bond's current price?

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