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Timothy has an opportunity to buy a $4000 par value municipal bond with a coupon rate of 9 % and a maturity of five years.

Timothy has an opportunity to buy a $4000 par value municipal bond with a coupon rate of 9 % and a maturity of five years. The bond pays interest annually. If Timothy requires a return of 12 %, what should he pay for the bond?

If Timothy requires a return of 12%, the amount he should pay for the bond is ?

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