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Washington Corporation has a $1,000 par value bond outstanding paying annual interest of 6%. The bond matures in 25 years. If the present yield to
Washington Corporation has a $1,000 par value bond outstanding paying annual interest of 6%. The bond matures in 25 years. If the present yield to maturity for this bond is 10%, calculate the current price of the bond. Use annual analysis and round your answer to the nearest dollar.
Select one:
a. $147.
b. $637.
c. $1,000.
d. $1,511.
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