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QUESTION 2 A SA $1,000 (par value) government bond which pays Interest semi-annually has a 4% coupon and will mature in 10 years. It market

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QUESTION 2 A SA $1,000 (par value) government bond which pays Interest semi-annually has a 4% coupon and will mature in 10 years. It market interest raten decline to 3% for a bond of similar risk and maturity, what will be the new fair price of the bond to the closest dollar? O A $851 OB. $1,429 OC. $1,086 D. $1,046 O E None of the above

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