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(Bond valuation ) Bellingham bonds have an annual coupon rate of 12% and a par value of $ 1000 and will mature in 5 years.

(Bond valuation) Bellingham bonds have an annual coupon rate of 12% and a par value of $ 1000 and will mature in 5 years. If you require a return of 16%, i) what price would you be willing to pay for thebond? ii) What happens if you pay more for thebond? iii) What happens if you pay less for thebond?

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