Answer:
The answer is 33.98.
Explanation:
Discount the accumulation of discount in the 19th coupon 18 periods to find the accumulation of discount in the first coupon. Then find the FV of an annuity with 8 as the number of periods with the accumulation of discount in the first coupon as the payment and and you will get 33.98.
Given di19 = C(i − g)[tex]v^{20-19+1}[/tex] = C(i − g)[tex]v^{2}[/tex] = 8, So
= C(i − g)[tex]v^{2}[/tex]([tex]v^{18}[/tex]+[tex]v^{17}[/tex]+...+[tex]v^{11}[/tex])
=8[tex](\frac{1}{1.045})^{10}[/tex] [tex]\frac{1-(\frac{1}{1.045} )^{8} }{0.045}[/tex]
=33.98
