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4. Given a N-year coupon bond with annual coupon rate of c (% per annum) and principal (face) value of F. Suppose the coupon frequency

4. Given a N-year coupon bond with annual coupon rate of c (% per annum) and principal (face) value of F. Suppose the coupon frequency is m and the bond yield is R (% per annum). With simple compounding, show that the bond price formula in p.20 of the topic 3 can be writtern as Hint: you may find a+a2+? +ar) useful. From (1), show that the bond is a discount (P(R) F) when c R respectively

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