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Compute the price of a 5-year coupon bond with $1000 face value and annual coupon payments of $80 if the yield to maturity is 5.5%

Compute the price of a 5-year coupon bond with $1000 face value and annual coupon payments of $80 if the yield to maturity is 5.5%

a) $765.12

b) $1,106.76

c) $1,327.01

d) $2,454.55

e) None of the above.

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