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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. $1131.8845

b. $1364.2658

c. $1406.9934

d. $807.5382

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