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Find Value Factor on Coupon Rate

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With a 10% discount rate, the present value factors of $1 received at the end of each of the next three years are 0.909 and 0.751, respectively. Given these values, the present value of a $1,000 (par) 3-year corporate bond with an 8% coupon rate is?

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Solution Summary

The solution calculates the PV of a corporate bond with a coupon. The present values with respective coupon rates are determined.

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