Question: Q 5 . A 1 - year bond with a face value of $ 1 0 0 pays coupons at the rate of 1 0

Q5. A 1-year bond with a face value of $100 pays coupons at the rate of 10% per annum semiannually. The 6-month and 12-month zero rates are 4% and 6% per annum with semiannual compounding. What is the theoretical price of this bond?

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