(Solution) - Consider a bond with a face value of 1000 and -(2025 Original AI-Free Solution)

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Consider a bond with a face value of $1000 and a coupon of $100. Suppose the interest rate is 10 percent. Does the PDV of the promised payments depend on the bond's maturity? Why or why not? Think about putting $1000 in a bank account that pays 10 percent interest. If you withdraw $100 at the end of each year, what do you always have left?