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A $6000 bond that pays 7% semi-annually is redeemable at par in 20 years. Calculate the purchase price if it is sold to yield 5%

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A $6000 bond that pays 7% semi-annually is redeemable at par in 20 years. Calculate the purchase price if it is sold to yield 5% compounded semi-annually (Purchase price of a bond is equal to the present value of the redemption price plus the present value of the interest payments). RICE

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