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A bond with a face value of $1,200 pays half-yearly interest at a rate of 7% pa compounded half-yearly and has 8 years until maturity.

A bond with a face value of $1,200 pays half-yearly interest at a rate of 7% pa compounded half-yearly and has 8 years until maturity. The next interest payment is due in exactly one half-year. Calculate the price (P) required to yield 2% pa compounded half-yearly. Give your answer in dollars and cents to the nearest cent.

P = $

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