We now turn to a financial asset called a bond. It is a security issued...
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We now turn to a financial asset called a bond. It is a security issued by a government or a corporation to finance their operations. Against payment by the lender of an amount P $ upfront, the borrower commits on reimbursing at the end of year an amount of $ and at the end of each intermediate year including last year an amount $ : is a fraction of the nominal amount in the above case for instance This amount is therefore paid each year to make the lender bear with the borrower until the end. Thus, if against payment of a sum by the lender, the borrower must pay back I in years, but nothing in between. While such bond is a means for the borrower to finance his venture, it is at the same time an investment asset for the lender who can thus invest his money during the whole life of the loan thus granted. Compute and simplify the formula giving by expressing the fact that this quantity is equal to the sum of the present values of the flows of each year dotsn 
We now turn to a financial asset called a bond. It is a security issued by a government or a corporation to finance their operations. Against payment by the lender of an amount P $ upfront, the borrower commits on reimbursing at the end of year an amount of $ and at the end of each intermediate year including last year an amount $ :
is a fraction of the nominal amount in the above case for instance This amount is therefore paid each year to make the lender bear with the borrower until the end. Thus, if against payment of a sum by the lender, the borrower must pay back I in years, but nothing in between. While such bond is a means for the borrower to finance his venture, it is at the same time an investment asset for the lender who can thus invest his money during the whole life of the loan thus granted.
Compute and simplify the formula giving by expressing the fact that this quantity is equal to the sum of the present values of the flows of each year dotsn
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