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Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): The timeline starts at Period 0
Assume that a bond will make payments every six months as shown on the following timeline (using six-month periods): The timeline starts at Period 0 and ends at Period 60. The timeline shows a cash flow of $ 20.37 each from Period 1 to Period 59. In Period 60, the cash flow is $ 20.37 plus $ 1,000. Period 0 1 2 59 60 Cash Flows $20.37 $20.37 $20.37 $20.37+$1,000 a. What is the maturity of the bond (in years)? b. What is the coupon rate (as a percentage)? c. What is the face value?
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