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There was an exactly same question posted on chegg but the method was completely incorrect. Pls do this step by step (SoA 86 May #8)
There was an exactly same question posted on chegg but the method was completely incorrect. Pls do this step by step
(SoA 86 May \#8) A 100 par value 100 -year bond with a redemption value of 100 has annual coupons of 10% for the first 10 years, 9% for the next 10 years, 8% for the next 10 years, ..., 1% for the last 10 years. Calculate the price of the bond to yield i. (A) (10s10a10)/s10+100v100 (B) (10s10a10)/(is10)+100v100 (C) (10s10v10a10)/s10+100v100 (D) (10s10a100)/s10+100v100 (E) (10s10a100)/(is10)+100v100 [Ans: (E)]Step by Step Solution
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