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You have bought a $1,000 10-year government bonds that pay a coupon rate of 10% p.a. (semi-annual compounding). If the market yield is 8% p.a.
You have bought a $1,000 10-year government bonds that pay a coupon rate of 10% p.a. (semi-annual compounding). If the market yield is 8% p.a. compounding semi-annually, how much did you spend?
$1,081.11
$1,134.20
$1,135.90
$705.46
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