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You have a 1 0 year bond with a face value of $ 1 0 0 0 . Assume that the yield to maturity is

You have a

10

year bond with a face value of $

1000 .

Assume that the yield to maturity is

10 %

and that the coupon rate is

8 %,

What is the value of the bond if coupons are paid annually?

What is the value of the bond if coupons are paid semi

-

annually?

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