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Q5) Lilywater Incorporated has a bond outstanding with a face value of $1500 that reaches maturity in 15 years. The bond certificate indicates that the

Q5) Lilywater Incorporated has a bond outstanding with a face value of $1500 that reaches maturity in 15 years. The bond certificate indicates that the stated coupon rate for this bond is 8% and that the coupon payments are to be made semi-annually. Assuming the appropriate YTM on the Lilywater bond is 7.5%, then the price that this bond trades for will be closest to:

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