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Design a bond where the first coupon (paid a year after issue)* is n times larger than the final coupon (paid at maturity), where n
Design a bond where the first coupon (paid a year after issue)* is n times larger than the final coupon (paid at maturity), where n is the maturity at issue. Of course, since the bonds coupon payment varies over time, its coupon rate does as well. They would like to ensure that the final coupon rate is the same as the bonds yield to maturity (YTM) at issue.
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