Jim buys an 8-year $10,000 bond,redeemable at 101.5,with a coupon rate of j₂ = 6%.He pays $10,080 for the bond.Jim sells the coupons to Tim,who wishes to yield j₂ = 5.5% and sells the remaining strip bond to Kim,who wishes to yield j₁₂ = 6%.What is Jim's profit?

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The Answer of Jim buys an 8-year $10,000 bond,redeemable at 101.5,with a coupon rate of j₂ = 6%.He pays $10,080 for the bond.Jim sells the coupons to Tim,who wishes to yield j₂ = 5.5% and sells the remaining strip bond to Kim,who wishes to yield j₁₂ = 6%.What is Jim's profit?

Jim Buys an 8-Year $10,000 Bond,redeemable at 101