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500 10.01 6 Question 17 A $1000 bond, redeemable at par on December 1, 2022. with 3% coupons payable semi- annually. The bond is bought

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500 10.01 6 Question 17 A $1000 bond, redeemable at par on December 1, 2022. with 3% coupons payable semi- annually. The bond is bought on June 1, 2019. Find the purchase price and construct a bond amortization schedule if the desired yield is 4% compounded semiannually. Question 18 Let D(nr. ) denotes the Macaulay duration of a coupon bond with coupon rate of per payment, n payments to maturity and yield to maturity of i per coupon-payment period. The bond is redeemable at par with face value = 100. (a) Show that Dnr. ) (1+1) + n(n-1) (1) Find lim D(n,r, i)

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