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A $1,000 par value bond has an 8% coupon rate (paid semiannually). It has 5 years remaining to maturity. If current market interest rate is

A $1,000 par value bond has an 8% coupon rate (paid semiannually). It has 5 years remaining to maturity. If current market interest rate is 6%, what should be the current price of this bond?

a. $1,000

b. $1,268.40

c. $918.89

d. $1,085.30

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