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Compute the present value of a bond that pays a coupon of $5 semiannually for the next 20 years starting half a year from now
Compute the present value of a bond that pays a coupon of $5 semiannually for the next 20 years starting half a year from now and repays the principal of $100 in 20 years. The annual interest rate compounded semiannually is 5%.
a) 125.51
b) 135.75
c) 162.76
d) 195.67
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