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What is the pv of the principle

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Problem 1: A 10-year bond pays interest annually. Its par value is $2,000 and its coupon rate equals 6% and the market's required return on the bond is 4.5%. Is this a premium or discount bond? Please show the math in your solution.

Problem 2: If a 10 year bond that pays interest annually has a par value of $1,000, coupon rate of 9.125%, rate of return of 8%, and a bond price of $1,080.31. If the PV Coupon is $651.43, what is the PV of the principle?

Reference no: EM132745430

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