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BY Corporation's Class Semi bonds have a 1 0 - year maturity and an 8 % coupon paid semiannually, and those bonds sell at their

BY Corporation's Class Semi bonds have a 10-year maturity and an 8% coupon paid
semiannually, and those bonds sell at their $1,000 par value. The firm's Class Ann bonds have the same
risk, maturity, nominal interest rate, and par value, but these bonds pay interest annually. Neither bond is
callable. At what price should the annual payment bond sell?

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