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A ten-year 9% $1,000 par value bond is currently trading for $1,020. You believe you can reinvest the semiannual coupon payments at a 3.5% semi-annual

A ten-year 9% $1,000 par value bond is currently trading for $1,020. You believe you can reinvest the semiannual coupon payments at a 3.5% semi-annual rate through maturity. However, you plan to sell the bond after two years. You believe that in two years, comparable 8-year maturity bonds will be priced to yield 8% annually. How much do you expect the bond will sell for in two years?

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