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Assuming that the current interest rate is 10 percent, compute the present value of a five-year, 5 percent coupon bond with a face value of
Assuming that the current interest rate is 10 percent, compute the present value of a five-year, 5 percent coupon bond with a face value of $20,000. What happens when the interest rate goes to 11 percent? What happens when the interest rate goes to 9 percent?
Find PV at an interest rate of 10% and 11%?
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