Question: Please explain exactly how to get the final answer (given). I am not understanding exactly how to get the numbers shown in the calculations so
Please explain exactly how to get the final answer (given). I am not understanding exactly how to get the numbers shown in the calculations so step by step would really help. Thank you!
$100 principal with $10 annual coupon at interest rate 5% for 20 years: PBP+ PCP = $37.69 + $124.60 = $162.29
$100 principal with $10 annual coupon at interest rate 10% for 20 years: PBP+ PCP = $14.86 + $85.10 = $99.96
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