Question: This question has two parts (a and b) Question 3 (a) A Treasury bond has a face value of $10,000, pays 10% per annum with

This question has two parts (a and b) Question 3 (a)

This question has two parts (a and b) Question 3 (a) A Treasury bond has a face value of $10,000, pays 10% per annum with half-yearly coupons and matures on 18 December 2018. Current ylelds for similar Treasury bonds are 8% per annum Calculate the price of the bond in the secondary market on 25 March 2017 Calculate the price of the bond in the secondary market on 3 April 2018

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