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A $19,200 mortgage bond that is due in one year pays interest of $600 every three months.

1. Find the coupon rate of the bond. ____

I found b=0.125

2. Find the present value of one of these bonds. (Ignore past activity; consider future interest payments as well as repayment of the principal at the time the bond matures.) ______

Microeconomics, Economics

  • Category:- Microeconomics
  • Reference No.:- M9472872

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