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What is the price of a 6% coupon bond if the bond is priced to yield...

  1. What is the price of a 6% coupon bond if the bond is priced to yield 5% YTM, and has 9 years to maturity? Assume $1000 par value and semiannual coupon payments.

  2. What will be the rate of return on the bond if the yield to maturity at the end of the year is (a) 3%? (b) 5%? (c) 7%?

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