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In an answer to determining the coupon rate of a $10, 000 bond to be redeemed at par after three years, the following equation was given:
PV=$100xc%A+$10000×V
Where c% – coupon rate
A – annuity for 3yrs at given cost of capital
V – present value factor for 3yrs at cost of capital.
My question is shouldn’t the expression $100x c% rather be $10,000 x c% since that is the cash flow that we have to discount and not just $100xc%?
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