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Story problem: John buys a Treasury bearer bond in the primary market so he is the first owner of this bond. The bond has semiannual
Story problem:
John buys a Treasury bearer bond in the primary market so he is the first owner of this bond.
The bond has semiannual payments, years to maturity, a $ par value, and a coupon rate.
John buys the bearer bond at a price of of par value.
George buys the bearer bond from John when it has years to maturity at a price of of par value.
Rose buys the bearer bond from George when it has years to maturity at a price of of par value
Chris buys the bearer bond from Rose when it has years to maturity at a price of of par value.
Andy buys the bearer bond from Chris when it has years to maturity at a price of of par value.
Andy holds the bond to maturity.
tableQuestions:Answer: When the bond is sold for the first time, how many coupons are attached to it How many coupons does John detach and present to the bond issuer?, How many coupons does George detach and present to the bond issuer?, How many coupons does Rose detach and present to the bond issuer?, How many coupons does Chris detach and present to the bond issuer?, How many coupons does Andy detach and present to the bond issuer?,
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