Calculate the present value of the following

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Can explain to me how to solve the question step by step using the formula and not by excel.

1. Suppose that the market interest rate is 5%. Calculate the present value of the following.

a. A coupon bond with an annual coupon payment of $135 and a face value of $1500 that matures in five years.

b. A fixed payment loan with annual payments of $163 that matures in three years

Reference no: EM132740736

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