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(b) John purchases a 10-year bond with face value $100 and coupons at 8% convertible semianually which will be redeemed for C. The purchase price

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(b) John purchases a 10-year bond with face value $100 and coupons at 8% convertible semianually which will be redeemed for C. The purchase price at the date of issue is $90, and the present value of C is $39.95. Calculate C. [4]

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