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7 . A US corporate bond has a coupon rate of 5 % , a par ( face ) value of $ 1 , 0

7. A US corporate bond has a coupon rate of 5%, a par (face) value of $1,000 and will mature in 4 years. The current yield on similar bonds is 4.5%. Assuming coupons are paid annually, calculate the value of the corporate bond.

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