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Your friend has just bought a bond from Facebook Corporation. It has the following characteristics: $1,000 face value, 8 years to maturity, 10% yield to
Your friend has just bought a bond from Facebook Corporation. It has the following characteristics: $1,000 face value, 8 years to maturity, 10% yield to maturity, 8% coupon rate, semiannual payments.
Your friend paid $ "?" for this bond, and this bond is known as a premiumpar valuediscount "?" (select "premium", "par value", or "discount") bond.
Three years ago, Facebook Corporation was selling these bonds for $ "?"
In three years, investors will be able to buy these bonds for $ premiumpar valuediscount "?"
Solve for "?"
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