Problem regarding the payment on the bond

Reference no: EM131015459

A 10-year $2,000 bond pays a nominal rate of 8% compounded semiannually. If the market interest rate is 9% compounded annually and the general inflation rate is 5% per year, find the actual and constant dollar amount (time = year zero dollars) of the 14th interest payment on the bond.

Reference no: EM131015459

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