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Orange company issues $100,000 of bonds with a maturity of 5 years, which pay 3% interest annually. The bond yield to maturity is 3.5%. What

Orange company issues $100,000 of bonds with a maturity of 5 years, which pay 3% interest annually. The bond yield to maturity is 3.5%.

What is the price of ONE bond today?

PV of interest payments:

PV of maturity amount:

Does this bond sell at a discount or premium?

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