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A bond with a face value of $4000 is redeemable at 108, 9 years from now. If the bond pays coupons at 5.6% compounded quarterly

A bond with a face value of $4000 is redeemable at 108, 9 years from now. If the bond pays coupons at 5.6% compounded quarterly and has a yield rate of 7.8% compounded quarterly.

a) How large is each coupon payment?



b) What is the redemption value of the bond?

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