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1. What is the cash flow of a 8-year bond that pays coupon interest semiannually, has a coupon rate of 6%, and has a par value of $100,000?

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1. What is the cash flow of a 8-year bond that pays coupon interest semiannually, has a coupon rate of 6%, and has a par value of $100,000?
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Solution 1

Answer: The cash flow of the bond is $6,000 per year, or $3,000 every six months.

Analysis: To determine the cash flow of the bond, we need to calculate the annual coupon payment based on the bond's coupon rate and par value. The bond has a par value of $100,000 and a coupon rate of 6%.

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Whatisthecashflowofa8-yearbondthatpayscouponinterestsemiannually,hasacouponrateof6%,andhasaparvalueof$100,000?

1.Whatisthecashflowofa8-yearbondthatpayscouponinterestsemiannually,hasacouponrateof6%,andhasaparvalueof$100,000?

What is the cash flow of a 8-year bond that pays coupon interest semiannually, has a coupon rate of 6%, and has a par value of $100,000?

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