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Q1) Solve for todays market value for a particular bond given the following information: This investment grade (AAA Rated) bond matures five years from today.

Q1) Solve for todays market value for a particular bond given the following information:

  • This investment grade (AAA Rated) bond matures five years from today.
  • The investor purchased this bond for $1000 when interest rates for this bond were 6.0% (coupons are paid annually)
  • Currently interest rates corresponding to similar bonds are 5.0% (coupons paid annually)

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