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1 . Consider a zero - coupon bond, with a face value of $ 1 , 0 0 0 , maturing in 5 years. Suppose

1 .

Consider a zero

-

coupon bond, with a face value of $

1, 000,

maturing in

5

years. Suppose that the appropriate discount rate is

8 % .

What is the current value of the bond?

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