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Problem 7 - 1 9 A corporation issues a debt instrument such as a bond that promises to pay you annually $ 8 0 for

Problem

7 - 19

A corporation issues a debt instrument such as a bond that promises to pay you annually $

80

for four years and $

1, 000

after four years. What is the maximum amount you would pay for this debt instrument if you wanted to earn

9

percent? Use Appendix B and Appendix D to answer the question. Round your answer to the nearest dollar. $

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