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Suppose that Bernie Sanders has an investment horizon of 3 years. He wants to buy a 7yr 9% coupon bond, semiannual pay, yielding 10% rate

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Suppose that Bernie Sanders has an investment horizon of 3 years. He wants to buy a 7yr 9% coupon bond, semiannual pay, yielding 10% rate of return. Face value is 1000. What is the price of the bond now? A. 828.4 B.950.51 C. 1,000 D.974.62 QUESTION 8 Use the information in the previous question (i.e., question 7). Bernie thinks he can reinvest the coupon payments at an annual interest rate of 10.2%. Bernie is planning to sell the bond at the end of year 3 when the bond will be selling to yield 12%. What is the annualized yield? A. 27.69% O 8.7.49% OC. 6.21% D. 6.97%

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