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Given a bond that: Pays 100,000 at maturity Pays 5,000 a year in interest each and every year Lasts for 20 years A) Solve for

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Given a bond that: Pays 100,000 at maturity Pays 5,000 a year in interest each and every year Lasts for 20 years A) Solve for the current value of the bond when current interest rates are 3%. You must show your value of each part - The 100,000 at maturity and the 5,000 each year as well as the total. A1) PV of 100,000 in 20 years A2) PV of 5,000 a year for 20 years A3) PV of entire bond B) Solve for the present value of the same bond when interest rates are 4% You must show your value of each part -- The 100,000 at maturity and the 6,000 each year as well as the total. B1) PV of 100,000 in 20 years B2) PV of 5,000 a year for 20 years B3) PV of entire bond C) Solve for the percent change in the bond's value when interests rate rise from 3 to 4%

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