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Problem 3 You are about to purchase a 20-year bond, ($1,000 face value) with 3% annual coupons. If the current market rate is 5%, at

Problem 3 You are about to purchase a 20-year bond, ($1,000 face value) with 3% annual coupons. If the current market rate is 5%, at what price should you be willing to buy this bond, if this bond pays interest on an annual basis? (2.5 Points)

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