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Pay $4,000 for a bond. The bond pays 4,500 at the end of 2 years with a 10% coupon (interest) paid semi-annually (every 6 months).

Pay $4,000 for a bond. The bond pays 4,500 at the end of 2 years with a 10% coupon (interest) paid semi-annually (every 6 months). What is the present value of the bond? Is this a good deal since you are paying $4,000?

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