Question: Problem #3: The function (1) = 0.07 + 0.005t gives the effective annual rate of a zero coupon bond of maturity t, with t in

 Problem #3: The function (1) = 0.07 + 0.005t gives the

Problem #3: The function (1) = 0.07 + 0.005t gives the effective annual rate of a zero coupon bond of maturity t, with t in years. Find the price of a 2 year coupon bond with semiannual coupons of 7% and a face redemption value of $800.000 (A) 764354.39 (B) 835273.87 (C) 811634.04 (D) 740714.56 (E) 787994.22 Problem #3: Select

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