Calculate the annual payments and outstanding principal

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Question - Consider a 4 year bond with a face value of $100 and an annual interest rate of 5%. Calculate the annual payments and outstanding principal for three kinds of bonds (in terms of principal repayment).

A) A bullet bond.

B) A fully amortizing bond.

C) A partially amortizing bond with a balloon principal payment of $30 at the end.

Reference no: EM132857060

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