A 1 0 0 0 par value Bond, carrying a coupon rate of 1 2 percent is
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Question:
A par value Bond, carrying a coupon rate of percent is maturing in years from now. Find the current price of the bond in the market if the required rate of return of the investor is:
ai percent, ii percent, and iii percent.
b Perform the calculation for the bond price for and required rate of return if the bond pays interest on a quarterly basis.
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