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How much would you pay for a Canadian Savings Bond with a face value of $1000 that offers a 6% coupon (paid in two semi-annual
How much would you pay for a Canadian Savings Bond with a face value of $1000 that offers a 6% coupon (paid in two semi-annual payments starting in six months) and matures in 13 years? Prevailing interest rates are 4% compounded semi-annually.
The bond is worth:
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