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Compute the present values of the following bond using three (3) different discount rates. Face Value = $1,000 Coupon rate = 14% Maturity is 4

Compute the present values of the following bond using three (3) different discount rates. Face Value = $1,000 Coupon rate = 14%

Maturity is 4 years Coupons are paid once in a year. Compute the PV of the bond using: Discount rate of 16% Discount rate of 14% Discount rate of 12% Discuss the relationship between PV of a bond and different discount rates.

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