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Suppose a seven-year, $1,000 bond with a 6.95% coupon rate and semiannual coupons is trading with a yield to maturity of 4.16%. b. If the

Suppose a seven-year, $1,000 bond with a 6.95% coupon rate and semiannual coupons is trading with a yield to maturity of 4.16%.

b. If the yield to maturity of the bond rises to 4.90% (APR with semiannual compounding), at what price will the bond trade?

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