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How much should you pay for a $1,000 par value bond with a 6% annual coupon and five years to maturity if the prevailing interest

How much should you pay for a $1,000 par value bond with a 6% annual coupon and five years to maturity if the prevailing interest rate is 4%? a. $869.34 b. $1,956.45 c. $1,000 d. $1,089.04

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