Question: A B D 1 An analyst needs to value a 3-year, 5% annual coupon payment bond, which is not 2 actively traded. The analyst was

A B D 1 An analyst needs to value a 3-year, 5% annual coupon payment bond, which is not 2 actively traded. The analyst was able to find two other bonds with comparable credit 3 quality: 4 bond 1: 2-year, 4.5% annual coupon payment bond at a price of $110; 5 bond 2: 5-year, 5.5% annual coupon payment bond at a price of $108. 6 Suggest a pricing method and provide the value of the bond in question according to 7 it. 8

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