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10. (10 points) An n-year bond with annual coupons has the following characteristics: The redemption value at maturity is $1,890; The annual effective yield rate

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10. (10 points) An n-year bond with annual coupons has the following characteristics: The redemption value at maturity is $1,890; The annual effective yield rate is 5%; The book value immediately after the third coupon is $1,456.96; and The book value immediately after the fourth coupon is $1,477.028. (a) Find the amount of each coupon the bond pays. (b) Find the term of the bond. i.e. solve for n

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