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A bank has an outstanding bond issue with a face value of $ 1 0 0 0 per bond and three years to maturity. Interest
A bank has an outstanding bond issue with a face value of $ per bond and three years to maturity. Interest is payable annually. The bonds are privately held by a pension fund that wishes to sell them to another party. It estimates that, in the current market conditions, the bonds should provide nominal return of Calculate the price of the bond that should be realized on the sale?
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