Question: Sandy buys a 10-year commonwealth year bond with a face value of $100 and a coupon of 6% pa (paid semi-annually) at a yield of

Sandy buys a 10-year commonwealth year bond with a face value of $100 and a coupon of 6% pa (paid semi-annually) at a yield of 4% pa, when it is initially issued. What is the buying price?

Group of answer choices

$100

$116.22

$116.35

$118.44

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