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A 25-year maturity mortgage-backed bonds is issued. It has a par value of $10,000 and promises to pay a 9% annual coupon. At issue, bond

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A 25-year maturity mortgage-backed bonds is issued. It has a par value of $10,000 and promises to pay a 9% annual coupon. At issue, bond market investors require a 10.50% interest rate on the bond. If 5 years have passed after purchase of the bond and market interest rates have fallen to 8.50% at the end of five years, what will the value of the bond be, assuming annual payments and that the value or price is always quoted as a percentage of par value (round your answers to 2 decimals and ignore the percentage sign while entering. If the answer is 110.5412%, then enter your answer as 110.54)

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