What is price of the bond if the bond price is calculated

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Reference no: EM13257738

ABC bond pays a 6.5% coupon semi-annually and has 6 years remaining until maturity.

(a) What is the price if the yield to maturity is 5.5% and the bond price is calculated using semi-annual compounding?

(b) What is the price of the bond if the bond price is calculated using continuous compounding and a 5.5% yield?

Reference no: EM13257738

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