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A semiannual coupon bond was issued 5 years ago today with a maturity of 20 years. Its coupon rate is 8% and par value $1,000.

A semiannual coupon bond was issued 5 years ago today with a maturity of 20 years. Its coupon rate is 8% and par value $1,000. What is the current (today) bond price if the market interest is 6%?

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$1,196

$1,000

$1,085.30

$1,231.15

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