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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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