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4. You are considering purchasing a bond on the secondary market that pays annual coupons, has 30 years to maturity, and a par value of

4. You are considering purchasing a bond on the secondary market that pays annual coupons, has 30 years to maturity, and a par value of $10,000. The coupon rate is 7% and the yield to maturity is 10%. What is the price of this bond?

a. $1232.97

b. $717.19

c. $7,171.93

d. $10,700

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