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Two years ago, ABC Co. issued seven year semi-annual pay bonds with a coupon rate of 8 percent. At issue, the yield to maturity was

Two years ago, ABC Co. issued seven year semi-annual pay bonds with a coupon rate of 8 percent. At issue, the yield to maturity was 7.5%. Today the market rate on the bonds is 9 percent. The current price of the bond is closest to:

a) $1026.85

b) $1020.53

c) $960.44

d) 948.89

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