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An investor is considering purchasing a bond with a par value of $100 and a coupon rate of 8% payable annually. The bond is redeemable
An investor is considering purchasing a bond with a par value of $100 and a coupon rate of 8% payable annually. The bond is redeemable at par in 6 years' time. Bonds with the same level of risk have a yield to maturity of 7%. What is the price the investor should pay for the bond if the first interest payment will be paid one year after the date of purchase?
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