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How much should you pay for a $1,000 bond with 10 percent coupon, annual payments, and five years to maturity if the interest rate is

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How much should you pay for a $1,000 bond with 10 percent coupon, annual payments, and five years to maturity if the interest rate is 12 percent? 1) $927.90 2) $981.40 3) $1,000.00 4) $1,075.82

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