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Kim Shaw is considering the purchase of a 1 5 year bond that pays a coupon rate of 9 . 7 5 % over the

Kim Shaw is considering the purchase of a

15

year bond that pays a coupon rate of

9.75 %

over the life of the bond

(

annual payments

)

and a face value of $

1000

that is returned at the bond\'s maturity. Using a yield to maturity of

6.00 %,

calculate to the nearest penny the value of the bond today.

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