Question: interest will accumulate on the bond at rate /2 = 6.5% for the life of the bond. At the time of maturity, the total value

interest will accumulate on the bond at rate /2 = 6.5% for the life of the bond. At the time of maturity, the total value of the loan will be paid off, including all accumulated interest. Determine the price of a $1000 bond of this issue to vield is = 5 5% This type of bond is sometimes referred to as an accumulation bond

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