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(20 points) We have a 10-year bond such that: (a) It has a par value of $1000. (b) It has an annual coupona at rate

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(20 points) We have a 10-year bond such that: (a) It has a par value of $1000. (b) It has an annual coupona at rate 6%. (c) It is redeemed at .8 of par. Calculate the largest purchase price for the bond that will guarantee an annual effective yield rate of at least 5%

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