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Assume that a company has issued a $10,000, 5% bond due in 7-years.The bond pays interest semi-annually. Calculate the present value of the bond, assuming

Assume that a company has issued a $10,000, 5% bond due in 7-years.The bond pays interest semi-annually. Calculate the present value of the bond, assuming a 4% discount rate (or market interest rate). If the discount rate (i.e., market interest rate increases) to 8%, calculate the present value of the bond.

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