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a. Today you purchase a $600 face-value, 8% coupon bond for $600. This bond matures over 10 years. What is the value of the cash flow in year 5?
b. What is the present value (discounted value) of the last cash flow of the bond?
c. Find the sum of all present values of all coupon payments for this bond.
d. What is the price of this bond when it has one year left to maturity? Assume that the interest rate remains constant over the life of the bond.
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