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Consider a 10-year bond that pays a 5 percent coupon

Consider a 10-year bond that pays a 5 percent coupon semi-annually with a face value of $1000.

What is the price of this bond if the annualized yield to maturity of 5 percent (i.e., the stated rate is .05 compounded semi-annually)? What is the price of this bond if the annualized effective rate is 5 percent?

Consider the bond described in Problem 2 above but let the coupon be paid annually. Answer questions a & b in Problem 2 above for this annual coupon paying bond.

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Finance Basics: Consider a 10-year bond that pays a 5 percent coupon

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