Question: a borrower is repaying a $ 1 0 0 0 loan with 1 0 equal semiannual payments of principal. Interest at 6 % convertible semiannually

a borrower is repaying a $

1000

loan with

10

equal semiannual payments of principal. Interest at

6 %

convertible semiannually is paid on the outstanding balance together with the semiannual payments of the principal. Find the current price of the payments to yield an investor

12 %

convertible semiannually.

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