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1. How much should you pay for a bond with $1,000 face value, an 8 percent coupon rate, and seven years to maturity if your

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1. How much should you pay for a bond with $1,000 face value, an 8 percent coupon rate, and seven years to maturity if your appropriate discount rate is 10 percent and coupons are paid annually? Answers are rounded to the nearest dollar. A $560 B $903 $1,000 D $1,104

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