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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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TonieCee

Answer:

Explanation:

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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