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Problem 1 (20 points) (Continuous bonds) Consider a bond having an annual yield of a compounded continuously. The bond pays a face value of F

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Problem 1 (20 points) (Continuous bonds) Consider a bond having an annual yield of a compounded continuously. The bond pays a face value of F after a maturity time of n years, and pays a coupon at a rate of clyear, 0

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