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3. If the appropriate annual discount rate is 6%, the value of a 3-year bond that has a 7% coupon rate, has a maturity (par)

3. If the appropriate annual discount rate is 6%, the value of a 3-year bond that has a 7% coupon rate, has a maturity (par) value of $1,000, and pays interest annually is closest to:

a) $973.76.

b) $1026.73.

c) $1049.17.

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