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A three - year bond has an annual 8 % coupon rate and a $ 1 , 0 0 0 face value. If tire investors

A three

-

year bond has an annual

8 %

coupon rate and a

1, 000

face value. If tire investors demand a

5 %

semiannual return. calculate the price of the bond

assuming that the bond makes semiannual coupon

payments:

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