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Five years ago, the city of Baltimore sold at par a $1,000 bond with a coupon rate of 8 percent and 20 years to maturity.
- Five years ago, the city of Baltimore sold at par a $1,000 bond with a coupon rate of
8 percent and 20 years to maturity. If this bond pays interest semiannually,
what is the value of this bond to an investor who requires an 9 percent rate of return.
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