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Please answer with mathematical formulas, not an excel sheet please 3. John borrows an amount at an annual interest rate of 8%. He repays all

Please answer with mathematical formulas, not an excel sheet please image text in transcribed

3. John borrows an amount at an annual interest rate of 8%. He repays all interest and principal in a lump sum at the end of ten years John uses the amount borrowed to purchase a 5-year bond with a par value of 1000 with coupons at a nominal rate of 10% payable semiannually, with the first coupon paid at the end of 6-month period from now. The bond is redeemed at par and John's yield rate for the bond is 9% convertible semian- nually As John receives each coupon payment, he immediately puts the money into an account earning nominal rate of 5.8% convertible semiannually At the end of five years (from now), immediately after John receives the final coupon payment, John deposits the accumulated value of the coupons and the redemption amount of the bond into a savings account earning an annual interest rate of 6.5%. At the end of each year from year 6 through 10, John deposits an additional amount of 50 into this savings account Find John's balance at the end of ten years after the loan is repaid. from now

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