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A three-year, semiannual payment step-up coupon bond will pay coupons according to the schedule: Year Coupon Rate (annualized) 1 6% 2 7% 3 8% If

A three-year, semiannual payment step-up coupon bond will pay coupons according to the schedule:

Year Coupon Rate (annualized)

1 6%

2 7%

3 8%

If the market required rate of return is 8%, what is the price of the bond per 100 par?

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