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How valuing a bond is similar to valuing an annuity plus

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Reference no: EM131782362

1. Are coupon payments generally paid annually or every six months?

2. Bond Valuation: Explain how valuing a bond is similar to valuing an annuity plus an additional lump sum as done in the TVM chapter. In general, how is a bond valued?

3. A. What is a zero coupon bond? How is it valued? Is it ever a "premium" bond? Why is a zero coupon bond also known as a pure discount bond (or instrument)?

Reference no: EM131782362

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