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Compute the price of a 5 percent coupon bond with 20 years left to maturity and a market interest rate of 6.25 percent. (Assume interest

Compute the price of a 5 percent coupon bond with 20 years left to maturity and a market interest rate of 6.25 percent. (Assume interest payments are semi-annual.) Which statement is correct?

The bond is a discount bond selling at $858.41

The bond is a discount bond selling at $922.34

The bond is a premium bond selling at $858.41.

The bond is a premium bond selling at $922.34.

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