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For bonds, assume coupons paid semi-annually, coupon rates and yields quoted with semi-annual compounding, and redeemable at par unless otherwise noted (Ignore it if it's
For bonds, assume coupons paid semi-annually, coupon rates and yields quoted with semi-annual compounding, and redeemable at par unless otherwise noted (Ignore it if it's not relevant to the question).
A fund earning 8% effective is being accumulated with payments of P at the beginning of each year for 20 years. Find P such that the fund manager can make payouts of $5000 at the end of each of the last five years, leaving no balance left in the fund after the last payout is made at the end of year 20.
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