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An analyst is considering the purchase of a Government of Canada bond that promises to make coupon payments of $100 each year for three years

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An analyst is considering the purchase of a Government of Canada bond that promises to make coupon payments of $100 each year for three years (beginning in one year's time) and also repays the face value of $2000 at the end of the third year. The market interest rate is 6%. a. What is the present value of this bond? b. If the bond is being offered for sale at a price of $2000, should the analyst recommend to purchase the bond or not

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