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A bond has a 1 5 - year maturity, a 1 0 % annual coupon and a S 1 , 0 0 0 par value.

A bond has a

15 -

year maturity, a

10 %

annual coupon and a S

1, 000

par value. The required rate of return or the yield to maturity on the bond is

10 %,

given its risk, maturity, liquidity and other rates in the economy. What is a fair value for the bond i

.

.

its market price?

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