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AmerisourceBergen Inc. is planning to offer a $ 1 , 0 0 0 par value 1 2 - year maturity bond with a coupon interest

AmerisourceBergen Inc. is planning to offer a $1,000 par value 12-year maturity bond with a coupon interest rate that changes every 4 years. The coupon rate for the first 4 years is 13.00 percent, 14.80 percent for the next 4 years, and 15.50 percent for the final 4 years. If Oliver requires an 18 percent rate of return on a bond of this quality and maturity, what is the maximum price Oliver would pay for the bond? (Assume interest is paid annually at the end of each year.)
$803.21
$782.27
$735.63
$893.35

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