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A bond has a coupon rate of 4% and a yield or required return of 5%, $100 face value and 10 years to maturity. Assume

A bond has a coupon rate of 4% and a yield or required return of 5%, $100 face value and 10 years to maturity. Assume coupon payments are made semi-annually.

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Excel function PV(2.5%, 20, -2) can be used to find the present value of coupon payments.

Excel function PV(2%, 20, 0, -100) can be used to find the present value of face value.

Excel function PV(2.5%, 20, -2, 100,) can be used to find the value of the bond.

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