What is the total rate of return on the bond

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Consider a bond (with par value =$1,000) paying a coupon rate of 7% per year semiannually when the market interest rate is only 7% per half year. The bond has three years until maturity.

A. Find the bonds price today and six months from now after the next coupon is paid.

B. What is the total (6-month) rate of return on the bond?

Reference no: EM133275247

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