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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 $ 1000 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 14%. Calculate the price of the bond that should be realized on the sale?

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