A 4% bond maturing in 10 years with semiannual coupons and semianmual yield rate of 3% is to replaced by a 10 year bond also with semiannual coupons and semiannual yield rate of 4%. If both bonds have the same price and face value then find the semiannual coupon rate of the second bond.

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Q: This question has TWO parts. Please be sure to scroll down and make sure you answer both parts.…

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A: Step 1: Step 2: Step 3: Step 4:

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Q: An investor wants to find the duration of a(n) 10-year, 6% semiannual pay, noncallable bond that's…

A: Duration of bond is the weighted period of bond required to recover all cash flow from the bond and…