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Consider a zero-coupon bond issued by Microsoft Corporation with a face value of $1,000 and a maturity period of 5 years. The prevailing market interest
Consider a zero-coupon bond issued by Microsoft Corporation with a face value of $1,000 and a maturity period of 5 years. The prevailing market interest rate is 8%. Calculate the current price of the bond, its yield to maturity (YTM), the maturity date of the bond, and determine whether it is selling at a premium or discount.
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