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The following three types of bonds: Par Value Bond: Face value of $1,000, coupon rate of 5%, and maturity of 5 years. Discount Bond: Face
The following three types of bonds: Par Value Bond: Face value of $1,000, coupon rate of 5%, and maturity of 5 years. Discount Bond: Face value of $1,000, coupon rate of 3%, and maturity of 10 years. The market price of this bond is currently $900. Premium Bond: Face value of $1,000, coupon rate of 6%, and maturity of 3 years. The market price of this bond is currently $1,100. Calculate the value of each bond using the following steps: Par Value Bond: Calculate the present value of coupon payments and the final principal payment at maturity using the bond's coupon rate and yield to maturity (YTM). Discount Bond: Calculate the present value of coupon payments and the final
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