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Now assume that Company X issues the same 3 - year bond with a $ 1 , 0 0 0 par value and a 7

Now assume that Company X issues the same

3 -

year bond with a $

1, 000

par value and a

7 %

coupon rate that is paid quarterly

(4

payments per year

) .

Again, If the investor expects a

5 %

return for similar corporate bonds with the same maturity, what is the price that the investor is willing to pay for the bond?

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