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Calculate the value of each of the bonds shown in the following table (pay interest annually). Then, state whether the bond is selling at a
Calculate the value of each of the bonds shown in the following table (pay interest annually). Then, state whether the bond is selling at a premium, par, or discount.
| Bond | Par Value | Coupon Interest Rate | Years to Maturity | Required Return |
| 1 | $1,000 | 14% | 10 | 12% |
| 2 | $100 | 5% | 15 | 5% |
| 3 | $1,000 | 8% | 6 | 10% |
| 4 | $500 | 10% | 20 | 12% |
| 5 | $1,000 | 12% | 8 | 8% |
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