2 Problem Set: Bond Pricing - Term Structure A Treasury bond has the following characteristics...

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2 Problem Set: Bond Pricing - Term Structure A Treasury bond has the following characteristics . Principal: $1,000. . Term to maturity: 20 years. . Coupon rate: 8 percent. I. Semiannual payments. Calculate the price of the bond if the stated annual percentage rate (compounded anni- ally) is (a) 8 percent; (b) 10 percent; (c) 6 percent

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