What is the total rate of return on the bond

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Reference no: EM131178114

Consider a bond paying a coupon rate of 12% per annum semiannually when the market interest rate is only 4% per half-year. The bond has three years until maturity.

a. Find the bond’s price today and size months from now after the next coupon is paid.

b. What is the total rate of return on the bond?

Reference no: EM131178114

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