Question: Assuming that the current interest rate is 3 percent, compute the present value of a five-year, 5 percent coupon bond with a face value of

Assuming that the current interest rate is 3 percent, compute the present value of a five-year, 5 percent bond with a of $1,000. What happens when the interest rate goes to 4 percent? What happens when the interest rate goes to 2 percent?

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