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We discussed earlier an 7% coupon, 30-year maturity bond with par value of $1,000 paying 60 semiannual coupon payments of $40 each. Suppose that the

We discussed earlier an 7% coupon, 30-year maturity bond with par value of $1,000 paying 60 semiannual coupon payments of $40 each. Suppose that the interest rate is 6% annually, or r = 3% per six-month period. Then the value of the bond can be written as

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