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You are considering purchasing a bond that has a $ 1 , 0 0 0 par value, 5 % coupon, paid annually, 2 0 years

You are considering purchasing a bond that has a $

1, 000

par value,

5 %

coupon, paid annually,

20

years to maturity. Bonds with similar risk and maturity are now yielding

4 % .

What is the bond's current market value?

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