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How much should you pay for a $1,000 bond with 10% coupon, annual payments, and five years to maturity if the interest rate is 12%?

How much should you pay for a $1,000 bond with 10% coupon, annual payments, and five years to maturity if the interest rate is 12%? (a) $ 927.87 (b) $ 981.40 (c) $1,000.00 (d) $1,075.82

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