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10 November, 19:04

ABC Co. issued 1 million 6 percent annual coupon bonds that mature in 10 years. The face value is $1,000 per bond. What are the expected cash flows from one of these bonds?

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  1. 10 November, 21:00
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    The expected cash flows from one of these bonds are:

    - $60 in interest at the end of each year for 10 years, and

    - $1,000 repayment of principal at the end of 10 years.
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