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Consider a one-year bond with face value F= 1000, a coupon rate c= 10% and...

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Finance

Consider a one-year bond with face value F= 1000, a coupon rate c= 10% and coupon payments paid quarterly. Suppose that the market interest interest rate is 5%. You are planning to buy the bond today. what is the price of this bond today, i.e the present value of this bond?

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