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Bond D has a face value of $1000 and is issued with a 20-year maturity. It pays coupons annually with a coupon rate of 5%,

Bond D has a face value of $1000 and is issued with a 20-year maturity. It pays coupons annually with a coupon rate of 5%, and an annual yield of 2.5%. What is the price of the bond 6 months from the date it is issued?

a.$807.5382

b.$1406.9934

c.$1364.2658

d.$1131.8845

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