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Timothy has an opportunity to buy a $4,000 par value municipal bond with a coupon rate of 6% and a maturity of five years. The
Timothy has an opportunity to buy a $4,000 par value municipal bond with a coupon rate of
6% and a maturity of five years. The bond pays interest annually. If Timothy requires a return of 8%,
what should he pay for the bond?
If Timothy requires a return of 8%,
the amount he should pay for the bond is ??
(Round to the nearest cent.)
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