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    NPV NET PRESENT VALUE

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    Suppose you bought a bond that will pay $1,000, in 20 years. No intermediate coupon payments will be made. If the appropriate interest rate 8 percent.

    a. what is the current price of the bond.
    b. What will the price be in10 yeas from today?
    c. What will the price be 15 years from today?

    Assume the interest rate does not change over the life of the bond.

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