Draw the cash flow diagram of the bond transaction

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Reference no: EM131854373

Eric just purchased a 10,000 bond today. the bond rate is 8% per year payable semi-annually. he will recieve the 1st interest payment 6 months after purchasing the bond. he will sell the bond at maturity, immediately after recieving his 8th interest payment. Draw the cash flow diagram of the bond transaction, from the issuing organization's perspective, using the dollar amounts where they are known and using $P to represent the purchase price of the bond and $F the selling price of the bond (if they are not Known).

Reference no: EM131854373

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