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AF Inc. issued a bond with an annual coupon rate of 10% with interest paid semi -annually . The bond matures in 15 years. The

AF Inc. issued a bond with an annual coupon rate of 10% with interest paid

semi -annually. The bond matures in 15 years. The par value of the bond is

$1,000. If your required return for this type of bond is 5%, what is the

price you are willing to pay for the bond?

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