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Assuming annual interest payments and a principal value of $ 1 0 0 , what is the value of a 5 - year 6 .

Assuming annual interest payments and a principal value of $100, what is the value of a 5-year 6.4% coupon bond when the discount rate is i)4.6%, ii)6.4%, and iii)7.6%? Show that your results are consistent with the relationship between the coupon rate, discount rate, and price relative to par value.

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