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Assuming that the current interest rate is 2 percent, compute the present value of a five-year, 5 percent coupon bond with a face value of

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Assuming that the current interest rate is 2 percent, compute the present value of a five-year, 5 percent coupon bond with a face value of $500. What happens when the interest rate goes to 3 percent? What happens when the interest rate goes to 1 percent? Instructions: Enter your responses rounded to the nearest penny (two decimal places). PV at an interest rate of 2%= $ PV at an interest rate of 3% = $0 The present value (Gack to select when the interest rate rises to 3 percent PV at an interest rate of 1%- The present value (Click to select when the interest rate falls to 1 percent

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