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Consider the Province of British Columbia Strip Bond in Table

Question 32

Short Answer

Consider the Province of British Columbia strip bond in Table 9.1.
a) Calculate the bond's market price on June 1, 2009 based on the quoted yield of 4.311% compounded semiannually.
b) What would the price be one year later if the bond's yield remains the same?

Correct Answer:

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a) $68.946...

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