What are the bond payment patterns and the bonds value

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1. Assume that the 3% level-coupon bond discussed in this chapter has not just 5 years with 10 payments, but 20 years with 40 payments. Also, assume that the interest rate is not 5% per annum, but 10.25% per annum.

What are the bond payment patterns and the bond's value?

2. Check that the rates of return in the coupon bond valuation example on page 52 are correct.

Reference no: EM131234159

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