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Determine how much each of the following bonds should be worth when the market interest rate for borrowing and lending is 5%. a. A bond that promises to pay $3,000 in a lump sum after one year. b. A bond that promises to pay$3,000 in a lump sum after two years. c. A bond that guarantees a payment of $1,000 per year for three years.

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To determine if an investor is willing to invest in any of the following bonds at an interest rate of 5%, the present value must be calculated.

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