The bond consists of a 10-year, 10% annuity of $60/year plus a $600 lump sum at t=10.

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c.(3 points) Find value of bond.

pv pm fv Annual rate periods compounding mode

d.(3 points) What would happen if expected inflation rose by 3%, causing r=13%? Find value of bond.

pv pm fv Annual rate periods compounding mode