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Doug has been approached by his broker to purchase a bond for $795. He believes the bond should yield 8%. The bond pays a 5%

Doug has been approached by his broker to purchase a bond for $795. He believes the bond should yield 8%. The bond pays a 5% annual coupon rate and has 12 years left until maturity. What is the price of the bond? Should he buy the bond or not and why?

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