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Bond Par value Annual Coupon Maturity Market Price (when r=12%) A 100 14% 4 year 107 B 100 10% 8 year 117 100 4% 12

Bond Par value Annual Coupon Maturity Market Price (when r=12%) A 100 14% 4 year 107 B 100 10% 8 year 117 100 4% 12 year 52 Calculate the fair value of each bond when interest rates are 12%. Fair value Bond A = Fair value Bond B= Fair value Bond C =

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