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Example 6 . 2 . 2 A 2 0 year bond with a face value of $ 1 0 , 0 0 0 pays interest

Example 6.2.2
A 20 year bond with a face value of $10,000 pays interest at j2=
8% and is redeemable at 105. After 6 years, the bond is sold to an
investor who desires a yield of j2=7%. What price does this
investor pay for the bond?
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