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How much should you pay for a $1,000 bond with 12% coupon, annual payments, and 7 years to maturity if the interest rate is 10%?

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How much should you pay for a $1,000 bond with 12% coupon, annual payments, and 7 years to maturity if the interest rate is 10%? a. $927.90 b. $981.40 C. $1000 d. $1,097.37

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