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Say that you work for a bank that has purchased a bond issued by Verizon. The bond promises to make interest payments of $500 at

Say that you work for a bank that has purchased a bond issued by Verizon. The bond promises to make interest payments of $500 at the end of each year for the next six years. At the end of the sixth year, the bond also pays the $10,000 principal. If the discount rate is 7 percent, what is the present value of this stream of payments?

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