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Kellog Inc. offers a 7 percent coupon bond with semiannual payments and a yield to maturity of 8 percent. The bonds mature in 9 years.

Kellog Inc. offers a 7 percent coupon bond with semiannual payments and a yield to maturity of 8 percent. The bonds mature in 9 years. What is the price of a $1,000 face value bond?

A) $936.70

B) $578.27

C) $1,223.06

D) $937.53

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