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A invests $ 9 0 0 in a five - year bond with a 6 4 annual coupon rate. The bond matures for its par
A invests $ in a fiveyear bond with a annual coupon rate. The bond matures for its par value of $ The commission to buy this bond is $ and no commission is charged when the bond matures. However, if the bond is sold prior to maturity, another commission of $ would be paid by the seller. One year later. A wants to sell this bond and still obtain the same yield rate as before. Determine the price at which the bond muse sell for A to achieve this yield rate.
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