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A friend of yours would like to sell you a bond. The par value is $1,000 and you will receive 40 coupon payments. The bond

A friend of yours would like to sell you a bond. The par value is $1,000 and you will receive 40 coupon payments. The bond matures in 10 years and the coupon rate is 12%. Your goal is to earn a yield of 16%. What are you willing to pay for this bond?

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