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Suppose a 10-year $1,000 5% corporate bond with semiannual coupon payments offers a 7.14% yield. What price would an investor pay to buy this bond?

Suppose a 10-year $1,000 5% corporate bond with semiannual coupon payments offers a 7.14% yield. What price would an investor pay to buy this bond? LO2

$848.89

$1,121.71

$883.98

$1,019.32

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