Question: Use the following information to answer the question below. Consider a five-year, default-free bond with an annual coupon rate of 5% and a face value

Use the following information to answer the question below. Consider a

Use the following information to answer the question below. Consider a five-year, default-free bond with an annual coupon rate of 5% and a face value of $1000. A) What is the price today of this bond? B) Does this bond trade at a discount, premium, or at par? C) What is the price of the bond if there zero-coupon YTM at every maturity was 5%? Use the following information to answer the question below. Consider a five-year, default-free bond with an annual coupon rate of 5% and a face value of $1000. A) What is the price today of this bond? B) Does this bond trade at a discount, premium, or at par? C) What is the price of the bond if there zero-coupon YTM at every maturity was 5%

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