Mar/Jun 2017 - Toltuck Co

On a nominal value of $100, the interest will be $8 per year and the redemption is $102. So the receipts to the investor will be $8 at time 1, $8 at time 2, and a total of $110 (8 + 102) at time 3.

You use the same figures for both. I know the answer sets it out slightly differently for the two parts but they are the same flows. One shows 8 per annum for years 1 to 3 and then 102 at time 3, the other shows 8 at each of times 1 and 2 and then 110 at time 3. The flows are exactly the same in total at time 3.

You are welcome :-)