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Array purchases a bond, newly issued by Amalgamated Corporation, for $ 1 0 , 0 0 0 . The bond pays $ 5 0 0

Array purchases a bond, newly issued by Amalgamated Corporation, for $10,000. The bond pays $500 to its holder at the end of the first few years and pays $10,500 upon its maturity at the end of the 3 years.a. What are the principal amount, the term, the coupon rate, and the coupon payment for Arjays bond?Instructions: Enter your responses as whole numbers.Principal amount: $Term: yearsCoupon rate: %Coupon payment: $b. After receiving the second coupon payment (at the end of the second year), Arjay decides to sell his bond in the bond market.What price can he expect for his bond if the one-year interest rate at that time is 3 percent? 8 percent? 10 percent?Instructions: Enter your responses as whole numbers.The expected price for the bond at3 percent: $8 percent: $10 percent: $c. Suppose that after two years, the price of Arjays bond falls below $10,000, even though the market interest rate equals the coupon rate. One possible reason is that:

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