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3. [10 marks) Daniel's investment involves taking out a loan of $614 and using the entire amount to buy a $441 16% par value n-year

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3. [10 marks) Daniel's investment involves taking out a loan of $614 and using the entire amount to buy a $441 16% par value n-year bond with semi-annual coupons. The loan is repaid over n years by regular annual payments of $100 at the end of each year. (a) Assume both the loan and the bond have the same annual effective yield rate i. Calculate i. (b) At the end of m(m <>

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