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A 20-year maturity mortgage-backed bond is issued. The bond has a par value of $1,000 and promises to pay a 4 percent annual coupon. At
A 20-year maturity mortgage-backed bond is issued. The bond has a par value of $1,000 and promises to pay a 4 percent annual coupon. At the bond issue, bond market investors require a 6 percent interest rate return on the bond. What is the initial price on the bond? (Give answer to 2 decimal places if applicable).
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