Assume a bond with the following data: a coupon rate of 6%, maturity of ten years, making semiannual payments. a. Calculate the value of the bond one year after the bond was issued, assuming market interest rates remained the same. b. Calculate the value of the bond two years after the bond was issued, assuming market interest rates remained the same. c. Compute the rate of return of the bond during this one-year holding period.
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