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Pauline purchased an 8% coupon par bond at a price of N$ 1000 that expires in 20 years. However, Pauline encountered unforeseen liquidity problems that
Pauline purchased an 8% coupon par bond at a price of N$ 1000 that expires in 20 years. However, Pauline encountered unforeseen liquidity problems that forced her to sell the bond after holding it for 5 years. Similar bonds are currently trading at N$ 1000-00 and pay an annual coupon rate of 10%. At what price should Pauline sell her bond? Show all your steps
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