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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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