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Company Elberts bonds mature in 7 years, they pay $65 in annual interest and have a par value of $1,000. Assume the required rate of

Company Elberts bonds mature in 7 years, they pay $65 in annual interest and have a par value of $1,000. Assume the required rate of return on similar bonds is 5.5%.

a) What is the current price of one of these bonds?

b) Are the bonds trading at par, at a discount or at a premium?

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