Question: A 1,000 USD, 6% bond redeemable at par matures in 3 years. The coupons are payable semi-annually and the bond is bought to yield 5%

A 1,000 USD, 6% bond redeemable at par matures in 3 years.

The coupons are payable semi-annually and the bond is bought to yield 5% compounded semi-annually.

Calculate the book value of the bond right after the first coupon payment.

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