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A 25 year $18,000 bond is redeemable at par. It pays a 8% coupon semi-annually. The coupon is reinvested at 5%, compounded semi-annually. If the
A 25 year $18,000 bond is redeemable at par. It pays a 8% coupon semi-annually. The coupon is reinvested at 5%, compounded semi-annually. If the investor realized yield return of 7.5% annually over the 25 years, determine the price of the bond.
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