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Amortization: Consider a 4year bond with face value of 100 and an annual coupon rate...

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Finance

Amortization: Consider a 4year bond with face value of 100 and an

annual coupon rate of 5%. Calculate the annual payments and outstanding principal for

three kinds of bonds (in terms of principal repayment). A) A bullet bond. B) A fully

amortizing bond. C) A partially amortizing bond with a balloon principal payment of $30 at

the end.

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