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A young engineering company is a subcontractor in an effort to develop technology that will reliably detect and respond to release of a nuclear weapon.
A young engineering company is a subcontractor in an effort to develop technology that will reliably detect and respond to release of a nuclear weapon. The company is in need of additional funding and issues a series of $1,000 face value bonds that pay a nominal annual rate of 6% with quarterly payments. The bond matures in 5 years.
You buy the bond for $1,000, and decide to sell it immediately after the 12th interest payment. If you want to earn 12% per year compounded quarterly on your investment, what must be your selling price?
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