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Question 8. (15 marks) A $100 bond, issued on 15 June 2015 and redeemable at par on 15 December 2019, pays semi-annual coupons at p(2)

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Question 8. (15 marks) A $100 bond, issued on 15 June 2015 and redeemable at par on 15 December 2019, pays semi-annual coupons at p(2) = 7%. (a) Find the bond coupon value, and the redemption value. (b) In order to yield 9% per annum compounded semi-annually, what is the purchase price on the issue date? (c) If the bond holder wants to sell it on 10 January 2017, assuming that the yield is 9% per annum compounded semi-annually, find the market price, accrued bond interest, and the market quotation on 10 January 2017

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