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Imagine a thirty - year bond that was originally sold 7 years ago when the interest rate was 6 % . It includes a payment

Imagine a thirty-year bond that was originally sold 7 years ago when the interest rate was 6%. It includes a payment of $600 for each of the next 23 years and a $10,000 payment at the end of those 23 years. If the current prevailing interest rate on alternative investments is 5%, what is the value of this bond today? If the coupons were stripped and two instruments were created (the coupons and the final payment, zero-coupon bond), what is the value of the coupons? the zero coupon portion? Show your work.

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