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A corporation issues a debt instrument such as a bond that promises to pay you annually $60 for two years and $1,000 after two years.

A corporation issues a debt instrument such as a bond that promises to pay you annually $60 for two years and $1,000 after two years. What is the maximum amount you would pay for this debt instrument if you wanted to earn 7 percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar.

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