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ch.6-q18 Bond valuation Semiannual interest Find the value of a bond maturing in 12 years, with a $1,000 par value and a coupon interest rate

ch.6-q18

Bond valuationSemiannual interestFind the value of a bond maturing in 12 years, with a $1,000 par value and a coupon interest rate of 9% (4.5% paid semiannually) if the required return on similar-risk bonds is 13% annual interest (6.5% paid semiannually).

The present value of the bond is$ _____ (Round to the nearest cent.)

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