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Suppose that a bond has 5 years before it matures, a 8% coupon rate (paid at the end of each year), and a $1,000 face
Suppose that a bond has 5 years before it matures, a 8% coupon rate (paid at the end of each year), and a $1,000 face value. When the market interest rate (y) is 9%, what is the price of the bond. Is it selling at a discount or a premium?
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