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Problem 8 (30 points) A $10,000 serial bond is to be redeemed in $1,000 installments of principal per half year over the next five years.

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Problem 8 (30 points) A $10,000 serial bond is to be redeemed in $1,000 installments of principal per half year over the next five years. Interest at the annual rate of 8% is paid semiannually on the balance outstanding. How much should an investor pay for this bond in order to produce a yield rate of 6.5% semiannually

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