Bodie Company has purchased three corporate bonds as temporary investments. Bodie has assembled the following matrix of bond price data for actively traded bonds which can be used to indirectly estimate the selling price of each of Bodie€™s bonds.

For the three bonds it purchased, Bodie has determined the time to maturity and has also looked up the bond rating from Standard & Poor€™s. These data for the three bonds are as follows:

Estimate the fair value of each of the three bonds. Note: The par value of each of the bonds is $1,000, and the numbers given in the matrix of bond prices are expressed in terms of a percentage of parvalue.

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Bond Prices (% of par) Bond Ratings Term (in years) 03.85 103.66 101.64 95.66 103.56 02.53 100.29 91.49 10271 101.45 99.56 90.00 02.37 00.17 98.54 89.31 100.29 98.50 91.98 82.06 10 20 Bond Rating Term Bond 3 Bond 4 Bond 5 18