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A 2 0 - year bond pays interest at 4 % and was issued 1 1 years ago with a face value of $ 1

20 -

year bond pays interest at

4 %

and was issued

11

years ago with a face value of $

1, 000 .

Assume semi

-

annual interest. What is the bond

s price today if the current interest rate on comparable new bond issues is

6 % ?

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