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Use the table of discount factors to answer the following two questions. Remember, the discount factor is the present value of a dollar delivered at
Use the table of discount factors to answer the following two questions. Remember, the discount factor is the present value of a dollar delivered at a future date. 5. What is the price or present value of a four-year coupon bond with a face value of $1000 and a coupon rate of 5% paid annually at the end of each year? Hint: Write down the cash flow from the bond for each year, value it using the discount factors, and sum the pieces
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