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The coupon payments for the following bonds are paid semi-annually: Bond 1: Par- $100. Annual Coupon Rate = 0, Maturity= 0.5 yrs, Market Price=98 Bond
The coupon payments for the following bonds are paid semi-annually: Bond 1: Par- $100. Annual Coupon Rate = 0, Maturity= 0.5 yrs, Market Price=98 Bond 2: Par= $100, Annual Coupon Rate = 4, Maturity= 1.0 yr, Market Price=98.8 Bond 3: Par= $100, Annual Coupon Rate = 6.2, Maturity= 1.5 yrs, Market Price=101 The 18-month par yield for bonds that pay semi-annual coupon payments is: O (a) 4.081% (b) 5.12% c) 5.24% khd) 5.351% O e) 5.497%
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