Question: Question 1 A five-year bond is issued with a face value of 1,000 at 6% coupon rate paid semi annually. Prevailing interest rate on bonds

Question 1 A five-year bond is issued with a face value of 1,000 at 6% coupon rate paid semi annually. Prevailing interest rate on bonds with similar risk is 8%. What is the price of the bond? State whether the bond trades at a discount, at par, or at a premium.

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