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You are considering a 30-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. The data has been collected in

You are considering a 30-year, $1,000 par value bond. Its coupon rate is 8%, and interest is paid semiannually. The data has been collected in the Microsoft Excel Online file below. Open the spreadsheet and perform the required analysis to answer the question below.

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If you require an "effective" annual interest rate (not a nominal rate) of 8.96%, how much should you be willing to pay for the bond? Do not round intermediate steps. Round your answer to the nearest cent.

$ _____________

Bond valuation Years to maturity Par value of bond Coupon rate Frequency interest paid per year Effective annual rate 30 $1,000.00 8.00% 2 8.96% Calculation of periodic rate: Nominal annual rate Periodic rate Formulas #N/A #N/A Formulas #N/A 0.00% Calculation of bond price: Number of periods Interest rate per period Coupon payment per period Par value of bond Price of bond #N/A $1,000.00 #N/A GU

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