Consider a $10,000 face value Government of Canada strip bond from the issue in Table 8.3 that
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a. What will be the bond’s value on December 1, 2016?
b. Whatwillbethebond’svalueonDecember1,2020?
c. Suppose you invest an amount equal to the answer from Part (a) at 4.08% compounded semiannually for four years. What will its maturity value be?
d. To three-figure accuracy, why do you get the same answers for Parts (b) and (c)?
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