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(3) Suppose a corporate bond has a face value of 1,000 yuan and an annual interest rate of 10%. It is issued on January 1,
(3) Suppose a corporate bond has a face value of 1,000 yuan and an annual interest rate of 10%. It is issued on January 1, 2010 and matures on January 1, 2017. Simple interest is calculated. Interest is paid once a year and principal is repaid at maturity. Investors reinvest the interest at compound interest every year. The investor purchased the coupon on January 1, 2015, with an expected return rate of 12%, based on the following value evaluation formula:
n ixF F V = (1+r)' (1+r)" + 1-1 Calculate the purchase price of this bond.
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