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Compute the present values of the following. Bond using three different rates Face Value= $1,000 Coupon rate= 12% Coupons. Are paid once in. A year
Compute the present values of the following. Bond using three different rates
Face Value= $1,000
Coupon rate= 12%
Coupons. Are paid once in. A year
Compute the PV of the bond using
I Discount rate of 14%
ii Discount rate of 12%
iii Discount rate of 10%
iv Discuss the relationship between PV of bond and different rates
no years to maturity given. assume a year to maturity if neccesasry
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