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Q . 3 . XYZ Motors' bonds have 5 years remaining to maturity. Interest is paid annually, they have a $ 1 , 0 0

. 3 .

XYZ Motors' bonds have

5

years remaining to maturity. Interest is paid annually, they have a $

1, 000

par value, the coupon interest rate is

8 %,

and market interest rate is

9 % . (20

.)

-

What is the bond's current market price?

-

Is that bond a discount bond or premium bond?

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