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Sam is considering investing in a bond with a face value of $ 1 0 , 0 0 0 . The bond pays a coupon

Sam is considering investing in a bond with a face value of $10,000. The bond pays a coupon
interest of 4% payable quarterly. If he expects to make a return equal to market interest rate of 1
% per quarter on this investment with a maturity of 15 years, determine the most he can pay for
the bond. Find
i) quarterly coupon interest payment amount.
ii) i per quarter and n.
iii) price he can offer for the bond.

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