Imagine a bank has a 10,000 obligation today that will pay holders in 5 years that guarantees 8% interest, compounded annually. To fund the obligation, the bank buys a 6 year $10,000, 8% coupon bond. Rates are currently at 8%. create a chart for the 5 year and find the amount that needs to be paid in 5 years?

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10 Imagine a bank has a 10000 obligation today that will pay holders in 5 years that gur... View the full answer