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Question 4 A $1,000 par value bond bearing ((alpha )/(2)) annual coupons is purchased at $900 to yield an annual effective rate of alpha .
Question 4\ A
$1,000
par value bond bearing
((\\\\alpha )/(2))
annual coupons is purchased at
$900
to yield an annual\ effective rate of
\\\\alpha
.\ What is the amount of the write-up in value during the second year?\ *** (alpha = 0.1)
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