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2. An investor is interested in purchasing a $100,000, five-year, 7 percent interest rate bond for which interest is payable quarterly. a. Assume the bond
2. An investor is interested in purchasing a $100,000, five-year, 7 percent interest rate bond for which interest is payable quarterly. a. Assume the bond is to be issued today and the current market interest rate is 8 percent. What should the investor pay for this bond? b. Assume the bond is to be issued today and the current market interest rate is 6 percent. What should the investor pay for this bond?
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