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5, A 10-year loa n with an effective annual interest rate of 5% is to be repaid with the following payments 200 at end of

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5, A 10-year loa n with an effective annual interest rate of 5% is to be repaid with the following payments 200 at end of year 2 4 6 600 800 1000 10. Calculate the amount of principal in the second payment. 199.64 193.64 185.64 181.64 171.64 6 What is the duration of a 4 year bond with 8% annual coupons and par value $1000 if the present interest rate is 4%? 3.21 3.31 3.41 3.51 3.61 athend of years 1 and 2, respectively. The only investments available are two Bonds. Bond 1 matures in 1 year and yields 10%. Bond 2 matures his liabilities exactly. 2, respectively. The only investments available are two zero-coupon 2d yields 10%. Bond 2 matures in 2 years and has a yield rate of 12%. Determine your cost to match 2756 2259 2007

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