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You are analyzing a 3.5% Treasury bond that matures in 18 years, pays semi-annual coupons...

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Finance

You are analyzing a 3.5% Treasury bond that matures in 18 years, pays semi-annual coupons (next payment is in 6 months) and currently yields 4% p.a. The face value of the bond is $1,000. What is the value of the bond today?

Select one:

a.$905

b.$936

c.$575

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