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Assume a $1,000 face value bond has a coupon rate of 8.4 percent paid semiannually and has an eight-year life. If investors are willing to

Assume a $1,000 face value bond has a coupon rate of 8.4 percent paid semiannually and has an eight-year life.

If investors are willing to accept a 10.5 percent rate of return on bonds of similar quality, what is the present value or worth of this bond?

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