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3. A 20-year 1000 par value bond with 7% annual coupons can be called by the issuer at par on any coupon date immediately

3. A 20-year 1000 par value bond with 7% annual coupons can be called by the issuer at par on any coupon date immediately after the coupon has been paid, starting with the 8th coupon date. Sandy wants to buy this bond at a price of X that will guarantee that she will earn a yield rate of 5% or more. Determine X.

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