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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A: Please see the next step for the solution

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A: Given: Years = 15 Coupon rate = 4% YTM = 4%

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A: Step 1:Step 2:Step 3:

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Q: coupon

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A: Step 1: Step 2: Step 3: Step 4:

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