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Calculate the price of a 10 year bond paying a 6 percent annual coupon (half of the 6 percent semiannually) on a face value of

  1. Calculate the price of a 10 year bond paying a 6 percent annual coupon (half of the 6 percent semiannually) on a face value of $1,000 if investors can earn 8 percent on similar risk investments.

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