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A University of Alaska revenue bond pays an 5.5% level-coupon, matures in fifteen years, and offers an effective annual yield (i.e., true yield) of 5%.

A University of Alaska revenue bond pays an 5.5% level-coupon, matures in fifteen years, and offers an effective annual yield (i.e., true yield) of 5%. The bond has a principal value of $1000 and pays interest semiannually. What is the value of this bond, to the nearest dollar?

A. $481

B. $1,578

C. $1,039

D. $1,059

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