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An annual payment bond with a 6% coupon is available as an alternative to a 7% coupon semi-annual payment bond that is priced at par
An annual payment bond with a 6% coupon is available as an alternative to a 7% coupon semi-annual payment bond that is priced at par ($1,000). Both bonds have 10 years remaining until maturity. What price should you be willing to pay for the 6% coupon bond if you base the decision upon effective annual yield? (round to the nearest dollar)
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