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You are considering purchasing a bond that has an 12% coupon rate and matures in 15 years. If this bond is currently selling for $860.

You are considering purchasing a bond that has an 12% coupon rate and matures in 15 years. If this bond is currently selling for $860. What price should you pay for this bond? Assume semiannual payments and make sure to state your answer as an annual rate. Par value is $1000.

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