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You are considering buying a 3 - year coupon bond with a principal amount equal to $ 1 0 0 0 and a coupon rate

You are considering buying a

3 -

year coupon bond with a principal amount equal to $

1000

and a coupon rate equal to

10 .

You wi coupon payments on an annual basis. How much should you pay for this bond if your discount rate is

6 ?

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