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Assume that an individual investor requires 14% return on a zero-coupon bond with a par value of $1,000. The bond has 5 years to maturity.

Assume that an individual investor requires 14% return on a zero-coupon bond with a par value of $1,000. The bond has 5 years to maturity. What price will the investor pay for the zero-coupon bond? (assume annual compounding)

A. $519.37

B. $750.45

C. none of the above

D. $834.76

E. $645.76

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