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The interest rate is 1 5 % of a coupon bond. Calculate the value of a coupon bond that pays $ 1 2 0 per

The interest rate is

15 %

of a coupon bond. Calculate the value of a coupon bond that pays $

120

per year for each of the next five years and in the sixth year make a principal repayment of $

1500 ?

Repeat the process for an interest rate of

25 %

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