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Denis purchased a $10,000 face value Ontario Hydro Energy bond maturing in five years. The coupon rate was 8% payable semiannually. If the prevailing market
Denis purchased a $10,000 face value Ontario Hydro Energy bond maturing in five years. The coupon rate was 8% payable semiannually. If the prevailing market rate at the time of purchase was 7.3% compounded semiannually, what price did Denis pay for the bond? (Do not round the intermediate calculations. Round your final answer to 2 decimal places.) Assume that: - Bond interest is paid semiannually. - The bond was originally issued at its face value. - Bonds are redeemed at their face value at maturity. - Market rates of return are compounded semiannually
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