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Q6. 10 points in total Part I: What is the point of investing on a bond that does not pay any coupon (1.c. zero- coupon

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Q6. 10 points in total Part I: What is the point of investing on a bond that does not pay any coupon (1.c. zero- coupon bond)? Discuss (5 points) Part II: bond price [1 - cate] + (1+x)*] (1+x) What are "x" and "#" in the above equation? Is "X" APR, EAR, or periodic rate ? Discuss [5 points) coupon 1 1000 + I I 1

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