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What is the price of this bond

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Reference no: EM133069147

Question - A bond has a face value of 1000$ and matures in 10 years. It makes no coupon payments in the first four years and pays semi-annual coupons of 100$ each for the remaining six years (the first coupon is paid in 4.5 years from today, the last one at maturity). If the stated annual interest rate is 12% compounded semiannually, what is the price of this bond?

Reference no: EM133069147

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