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You purchase a bond from Amazon on April 1 during the pandemic of 2020. It matures in five years. It has a coupon rate of
You purchase a bond from Amazon on April 1 during the pandemic of 2020. It matures in five years. It has a coupon rate of 4% and is paid semi-annually. The par value is $10,000. Three years later, bonds of the same quality and maturity have a yield to maturity of 2%. You want to sell your bond. What is the fair value of your bond?
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