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The Coffee Cottage floated a semi-annual bond issue 5 years ago. The bonds were 20 year bonds. The Yield to Maturity is 5%. The cottage

The Coffee Cottage floated a semi-annual bond issue 5 years ago. The bonds were 20 year bonds. The Yield to Maturity is 5%. The cottage representative says that the coupon rate is 3%. How much should you pay for one bond?

What is the price of this bond?

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