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