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You are considering a 20-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require an effective annual

You are considering a 20-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. If you require an "effective" annual interest rate (not a nominal rate) of 7.12%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.

Use Microsoft Excel to answer the problem.

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