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The face value of a bond is AED 71,000, its stated rate is 7%, and the term of the bond is five years. The bond
The face value of a bond is AED 71,000, its stated rate is 7%, and the term of the bond is five years. The bond pays interest semiannually. At the time of issue, the market rate is 8%. Determine the present value of the bonds at issuance. (10 Points) (3 Pts) (3 Pts) a. Determine the Present Value of the bond at issuance. AED b. Determine the Present Value of the interest payments. AED c. What price should the bond sell for? AED (2 Pts) d. What type of bond is this, premium, discount, or par? (2 Pts) Paragraph BI SE ? a. Determine the Present Value of the bond at issuance. AED (3 Pts) b. Determine the Present Value of the interest payments. AED (3 Pts) I c. What price should the bond sell for? AED (2 Pts) d. What type of bond is this, premium, discount, or par? (2 Pts) Path: p
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