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You have just bought a 3-year, $10,000 coupon bond with an annual coupon of $600...

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Finance

You have just bought a 3-year, $10,000 coupon bond with an annual coupon of $600 when the market interest rate is 4%. a. Calculate the original price of the bond today. b. Calculate the new price of the bond one year after purchase, interest rates have changed to 6%, and you have received one of the coupon payments. What is your rate of return if you decide to sell the bond then? Show your work, do not use Excel.

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