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A bond has the following features: Coupon rate of interest (paid annually): 5 percent Principal: $1,000 Term to maturity: 12 years If the current rate
A bond has the following features:
Coupon rate of interest (paid annually): 5 percent
Principal: $1,000
Term to maturity: 12 years
If the current rate of interest on comparable debt is 8 percent, what should be the price of this bond? Assume that the bond pays interest annually. Round your answer to the nearest dollar.
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