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our friend Nancy has a bond that she would like to sell to you. The bond matures in 20 years, has a face value of

our friend Nancy has a bond that she would like to sell to you. The bond matures in 20 years, has a face value of $1000 and a coupon interest rate of 6%. If you know that the yield to maturity on similar bonds is 8%, what is the maximum price you would be willing to pay for the bond?

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