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A bond with a face value of $10,000 pays interest of 2% per year. This bond will be redeemed at its face value at the
A bond with a face value of $10,000 pays interest of 2% per year. This bond will be redeemed at its face value at the end of seven years. How much should be paid now for this bond when the first interest payment is payable one year from now and a 4% yield is desired ?
( Round to the nearest dollar )
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