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Question 2 1 ( 5 points ) Compute the price, today, of the following bond. The bond has semiannual coupon payments and a par value

Question

21 (5

points

)

Compute the price, today, of the following bond. The bond has semiannual coupon

payments and a par value of $

1, 000 .

The bond matures in

20

years, has a coupon

rate of

10 %,

and has, today, a yield to maturity

(

YTM

)

12 % .

The bond price is

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