Question: Consider two bonds. The first is a 2 n ycar bond with price $ 2 , 5 0 0 , has annual coupons with the
Consider two bonds. The first is a ycar bond with price $ has annual coupons with the ratio of the effective annual coupond rate to the effective annual yield rate and the present value of the redemption value is $
The second one is a year zero coupon bond with the same redemption value and effective annual yield rate as the first bond and price of $ Find the par value of the first bond.
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