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A risky bond has a maturity of two years with a coupon rate of 6% to be paid annually and a face value of $1000.

A risky bond has a maturity of two years with a coupon rate of 6% to be paid annually and a face value of $1000. The YTM of the bond is 7%. What is the equivalent zero-coupon face value if this zero-coupon bond has the same maturity and YTM as the coupon paying bond?

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