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What is the initial price of the bond

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Reference no: EM132742320

Suppose you purchase a 10-year bond with 6% annual coupons and $100 face value. You hold the bond for four years, and sell it immediately after receiving the fourth coupon. If the bond's yield to maturity was 5% when you purchased and sold the bond,

a) What is the initial price of the bond when you buy it?

b) What is the price at which you sell the bond?

Reference no: EM132742320

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