The present value of an annuity: Present value of annuity measures the present value of similar payments made at the regular time period in some future date. In Present value of annuity method, cash flows occur at the end of each period and the calculation of present value is done one period before the first cash flow.
Coupon amount: The fixed amount that should be paid on annuity at the end of the year is called coupon payment.
To determine:
The coupon amount to be paid for every two years.
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