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KJM ' s bonds bonds have a 4 . 0 % coupon rate, payable semiannually, and a par value of $ 1 , 0 0

KJM

'

s bonds bonds have a

4.0 %

coupon rate, payable semiannually, and a par value of $

1, 000 .

They mature exactly

10

years from today. The yield to maturity is

12 %,

so the bonds now sell below par. What is the price of KIM's bond?

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