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3. Compute the value of a bond that has a BD 2,000.00 par value and a 3% coupon interest rate. The issue pays interest annually

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3. Compute the value of a bond that has a BD 2,000.00 par value and a 3% coupon interest rate. The issue pays interest annually and has 5 years remaining to its maturity date. What is the value of the bond if bonds of similar risk are currently earning a 5% rate of return? (3) marks correct process + 2 marks correct answer) = 5 marks

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