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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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