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What should be the purchase price of a $1,000 bond redeemable at 105 and bearing semi-annual coupons at 9.75% if it is sold 2 years
What should be the purchase price of a $1,000 bond redeemable at 105 and bearing semi-annual coupons at 9.75% if it is sold 2 years before maturity and money is worth 11%, compounded annually? (8 marks)
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