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Today, each of the 3 bondholders (1,2,3) bought a 4-year, 6% semi-annual coupon bond, 10% YTM. Calculate the price at point in time listed below

Today, each of the 3 bondholders (1,2,3) bought a 4-year, 6% semi-annual coupon bond, 10% YTM.

  • Calculate the price at point in time listed below (assuming only pull-to-par effect):

Time

Price

Purchase

End of year 1

End of year 2

End of year 3

End of year 4

$100

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