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Assuming that the current interest rate is 3 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 3 percent, compute the present value of a five-year, 5 percent coupon bond with a face value of $10,000. What happens when the interest rate goes to 4 percent? What happens when the interest rate goes to 2 percent? Instructions: Enter your responses rounded to the nearest penny (two decimal places). PV at an interest rate of 3% $ PV at an interest rate of 4% $ The present value (Click to select)when the interest rate rises to 4 percent. PV at an interest rate of 2% $ The present value (Click to select when the interest rate falls to 2 percent
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