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A coupon bond that pays interest ( coupon ) semiannually has a par value of $ 1 , 0 0 0 , matures in 5

A coupon bond that pays interest

(

coupon

)

semiannually has a par value of $

1, 000,

matures in

5

years, and has a yield to maturity of

6 % .

If the coupon rate is

8 %,

what is the intrinsic value of the bond today?

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