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Suppose that, to finance the operation of its food truck business, Awesome Food Trucks Inc. decides to raise money by issuing bonds in Canada. Each

Suppose that, to finance the operation of its food truck business, Awesome Food Trucks Inc. decides to raise money by issuing bonds in Canada. Each bond has a face value of $10,000, a 5% annual coupon, and matures in 2 years. The buyers of bonds use an annual discount rate of 6% to value the bonds.


Calculate the fair market price of an Awesome Trucks bond.

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