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Suppose aseven-year, $1,000 bond with a 11.02 % coupon rate and semiannual coupons is trading with a yield to maturity of 9.70 % Question: If

Suppose aseven-year, $1,000 bond with a 11.02 % coupon rate and semiannual coupons is trading with a yield to maturity of 9.70 %

Question: If the yield to maturity of the bond rises to 9.93% (APR with semiannualcompounding), at what price will the bondtrade?

How is the cash flow calculated?

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