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An investor is considering purchasing a five year, sh. 100 000 par value bond bearing a coupon interest rate of 7%. The investor's required

An investor is considering purchasing a five year, sh. 100 000 par value bond bearing a coupon interest rate of 7%. The investor's required rate of return is 8%. Determine the amount the investor will be willing to pay now to purchase the bond which will mature at par value. (9 marks)

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