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Lucy Lampkin wants to purchase a bond with a face value of $7,000 and a bond rate of 8% per year, payable at 4% semiannually.
Lucy Lampkin wants to purchase a bond with a face value of $7,000 and a bond rate of 8% per year, payable at 4% semiannually. The bond has a remaining life of 5 years. If Lucy wants to earn at least 6% per year compounded semiannually, what is the maximum price she would be willing to pay to purchase the bond?
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