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THE PRESENT VALUE OF A BOND Sally is considering a 3-year bond with face value of $10,000 and annual interest payments at the contractual rate

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THE PRESENT VALUE OF A BOND Sally is considering a 3-year bond with face value of $10,000 and annual interest payments at the contractual rate of 7%. PV= Sketch the cash flows for this bond in the diagram based on the contractual interest rate and the face value. What is the present value of the bond, assuming Sally desires a rate of return of 15%? Hint: use the desired rate of return to discount the cash flows; use your PV table

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