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Create an example of how to calculate the present value of a bond by addressing the following points: 1. What is the face value? 2.

Create an example of how to calculate the present value of a bond by addressing the following points:

1. What is the face value?

2. What is the semi-annual interest payment?

3. What are the MARKET and CONTRACT interest rates (make them different)?

4. How many years until the bond matures?

5. What numbers should be used from tables B.1 and B.3 at the back of the textbook?

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