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12. You are considering the purchase of a 3-year bond with an annual coupon rate of 8% and a par value of $1,000. The bond

12. You are considering the purchase of a 3-year bond with an annual coupon rate of 8% and a par value of $1,000. The bond pays coupons annually. The discount rate (interest rate) for similar bonds is 9%.

What price are you willing to pay for the bond today (also referred to as beginning price)?

Please Explain!!

Thank You,

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