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The current nominal interest rate is 1 6 % compounded quarterly. You are interested in investing in a bond that matures in 1 0 years,

The current nominal interest rate is

16 %

compounded quarterly. You are interested in investing in a bond that matures in

10

years, has a face value of $

20, 000,

and which pays quarterly coupons with a coupon rate of

2 %

per quarter. What is the present value of the bond?

The solution is within $

25

of which of the following?

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