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A ten year $100,000 bond was selling with a 5 percent discount on its purchase....

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Accounting

A ten year $100,000 bond was selling with a 5 percent discount on its purchase. The annual coupon rate for the bond was 6% percent. Dividends are paid semi-annually.

a) Draw the cash flow diagram.

b) How much is each semi-annual dividend?

c) Based on a MARR of 10% per year compounded semi-annually, what is the next present value of the bond?

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