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Pricing bond with similar characteristics

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Reference no: EM132001091

1. What is the price of a bond paying a 10% coupon with semi-annual payments? Assume a $1000 face value, 10 years to maturity and a yield to maturity of 8%.

2. Now suppose you are pricing a bond with similar characteristics as above but both coupon payments in years 3 and 5 are omitted. What is the price of the bond?

Reference no: EM132001091

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