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Question 3 : , A $ 1 , 0 0 0 bond, redeemable at par, with annual coupons at i ( 1 ) = 1

Question 3: , A $1,000 bond, redeemable at par, with annual coupons at i(1)=10%a is
purchased for $1,134.20. If the write-down in the book value is $9.26 in the first year,
what is the write-down in the 8th year?
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